Question 17 Chapter 2 of Class 12 Part – 1 VK Publication

Question 17 Chapter 2 of Class 12 Part - 1 VK Publication
Question 17 Chapter 2 of Class 12 Part - 1 VK Publication

Question 17 Chapter 2 of Class 12 Part – 1

17. M , N and O are partners in a firm with fixed capitals of Rs.25,000, Rs. 35,000 and Rs. 45,000 respectively. The partnership deed provided for the following:
(a) Interest on capital @5% pa.
(b) Interest on drawings @6% p.a.
(c) Each partner withdrew Rs. 8,000 on October 1, 2017.
(d) Rs. 45,000 is to be transferred to a Reserve Account.
(e) Profit-sharing ratio is 2:2:1.
Net profit of the firm before above adjustments for the year ended 31st March, 2018 is Rs. 89,000.
Prepare Profit and Loss Appropriation Account for the year ending on 31st March, 2018.

The solution of Question 17 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   80,900
M 1,250   By Interest on Drawing A/C’s    
N 1,750   M 240  
O 2,250 5,250 N 240  
To Reserve A/C   45,000 O 240 720
To Profit Transferred To Capital A/C’s          
M 12,548        
N 12,548        
O 6,274 31,370      
    81,620     81,620

 

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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)

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

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

Chapter No. 4 – Ratio Analysis

Chapter No. 5 – Cash Flow Statement

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

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms 

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