# 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

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 Amount Particulars Amount To Interest on Capital A/c: By Profit and Loss A/c 50,000 A 3,000 B 1,800 4,800 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 A 23,714 B 7,905 31,619 50,000 50,000

Partner’s Capital Account

 Particulars A Rs. B Rs. Particulars A Rs. B Rs. To Drawings Account 8,000 6,000 By Balance b/d 50,000 30,000 To Balance c/d 74,714 41,286 By Interest on Capital 3,000 1,800 To A’s Salary A/C 6,000 – To B’s Salary A/C – 6,000 To B’s Commission A/C – 1,581 By P & L App. A/c 94,162 31,388 82,714 47,286 82,714 47,286

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)

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)

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