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)
|To Interest On Capital A/C:||By Profit And Loss A/C||80,900|
|M||1,250||By Interest on Drawing A/C’s|
|To Reserve A/C||45,000||O||240||720|
|To Profit Transferred To Capital A/C’s|
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Also, Check out the solved question of all Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution