Question 15 Chapter 2 of Class 12 Part - 1 VK Publication

Question 15 Chapter 2 of Class 12 Part – 1

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The solution of Question 15 Chapter 2 of Class 12 Part – 1: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

15. Arun, Varun and Karan are partners sharing profits and losses in the ratio of 1:1:3. Their capital accounts on 1st April, 2017 are Rs. 30,000, Rs. 24,000 and Rs. 6,000 respectively. The provisions of partnership deed provides that:
(i) 5% interest is to be allowed on capitals.
(ii) Karan gets Rs. 3,000 as annual salary.
(iii) Varun gets commission @ 10% after charging such commission.
(v) Drawings-Arun Rs. 9,000, Varun Rs. 7,500 and Karan Rs. 6,000.
The profits of the year ending on 31st March, 2018 was Rs. 25,800.
Prepare Profit and Loss Appropriation Account, showing above transactions in the allocation of profits among partners and partners’ capital accounts.

The solution of Question 15 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

(For the year ended 31st March, 2018)

Particulars		Amount	Particulars	Amount
To Interest On Capital A/C:			By Profit And Loss A/C	25,800
Arun	1,500
Varun	1,200
Karan	300	3,000
To Karan’s Salary A/C		3,000
To Varun’s Commission A/C		1,800
To Profit Transferred To Capital A/C’s
Arun	3,600
Varun	3,600
Karan	10,800	18,000
		25,800		25,800

Partner’s Capital Account

Particulars	Arun Rs.	Varun Rs.	Karan Rs.	Particulars	Arun Rs.	Varun Rs.	Karan Rs.
To Drawings A/c	9,000	7,500	6,000	By Balance b/d	30,000	24,000	24,000
To Balance c/d	26,100	23,100	14,100	By Interest on Capital	1,500	1,200	300
				By Salaries A/c	–	–	3,000
				By Commission A/c	–	1,800	–
				By P & L App. A/c ( Profit)	3,600	3,600	10,800
	35,100	30,600	20,100		35,100	30,600	20,100