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Question 16 Chapter 2 of Class 12 Part – 1 VK Publication

Question 16 Chapter 2 of Class 12 Part - 1 VK Publication
Question 16 Chapter 2 of Class 12 Part - 1 VK Publication

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Question 16 Chapter 2 of Class 12 Part – 1

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16. A and B are partners sharing profits and losses in the ratio of 3:1. On 1st April, 2017, their capitals were: A Rs. 50,000 and B Rs. 30,000. During the year ended 31st March, 2018, they earned a net profit of 750,000. The terms of partnership are as follows:
(a) Interest on capital is to be charged @6% per annum.
(b) A will get a commission at 2% on turnover.
(c) B will get a salary of Rs. 500 per month.
(d) B will get commission of 5% on profits after deduction of all expenses including commission
Partners Drawings for the year were: A Rs. 8,000 and B Rs. 6,000. Turnover for the year was Rs. 3,00,000
After considering the above facts, you are required to prepare the Profit and Loss Appropriation Account and Partners’ Capital Accounts.

The solution of Question 16 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

(For the year ended 31st March, 2018)

Particulars 
 
AmountParticulars 
 
Amount
To Interest on Capital A/c:  By Profit and Loss A/c50,000
A3,000   
B1,8004,800  
To A’s Salary A/C 6,000  
To B’s Salary A/C 6,000  
To B’s Commission A/C( 33,2000 x 5/105) 1,581  
To Profit Transferred To Capital A/C’s    
A23,714   
B7,90531,619  
  50,000 50,000

Partner’s Capital Account

Particulars 

 A Rs. 

B Rs.Particulars A Rs. B Rs.
To Drawings Account8,0006,000By Balance b/d50,00030,000
To Balance c/d74,71441,286By Interest on Capital3,0001,800
   To A’s Salary A/C6,000
   To B’s Salary A/C6,000
   To B’s Commission A/C1,581
   By P & L App. A/c94,16231,388
 82,71447,286 82,71447,286

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Note: Interest on Drawings has been charged for an average period of six months.

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Also, Check out the solved question of all Chapters: –

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

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I (Introduction)

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Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)

Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

Chapter No. 8 – Company Accounts (Share Capital)

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Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

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

Chapter No. 1 – Financial Statements of a Company

Chapter No. 2 – Financial Statement Analysis

Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size

Chapter No. 4 – Ratio Analysis

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Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms 

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