Advertisement

Question 18 Chapter 2 of Class 12 Part – 1 VK Publication

Question 18 Chapter 2 of Class 12 Part - 1 VK Publication
Question 18 Chapter 2 of Class 12 Part - 1 VK Publication

Advertisement

Question 18 Chapter 2 of Class 12 Part – 1

Advertisement

18. Meenu and Joy are partners sharing profit in the ratio of 4:5 with capitals of Rs. 1,00,000 and Rs. 1,20,000 respectively. Interest on capital has been agreed at 10% p.a. Joy is entitled to receive a salary of Rs. 12,000 pa. They both withdrew Rs. 10,000 each during the year.
Profit made during the year was Rs. 90,000 before appropriations, depreciation on machinery @12% valued at Rs. 1,00,000 and also before providing for a provision on debtors at 10% valued at Rs. 40,000. Manager is to be allowed a commission of 10% after charging such commission. Prepare Profit and Loss Appropriation Account and Partners’ Capital Accounts when capitals are (i) fixed, and (ii) fluctuating.

The solution of Question 18 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Account

Particulars 
 
AmountParticulars 
 
Amount
To Depreciation on Machinery12,000By Profit b/d90,000
To Provision for Doubtful Debts4,000  
To Manager’s Commission A/c (74,000 x 10/110)6,728  
To Profit Transferred to Profit and Loss Appropriation A/c67,272  
 90,000 90,000

Profit and Loss Appreciation Account

Particulars 
 

AmountParticulars 
 
Amount
To Interest On Capital A/C:  By Profit and Loss A/c67,272
Meenu10,000   
Joy12,00022,000  
To Joy’s Salary A/C 12,000  
To Profit Transferred To Capital A/C’s    
Meenu14,788   
Joy18,48433,272  
  67,272 67,272

(i) When Capitals are fixed

Advertisement-X

Partner’s Capital Account

Particulars 

 Meenu Rs. 

Joy Rs.Particulars Meenu Rs. Joy Rs.
To Balance c/d1,00,0001,20,000By Balance b/d1,00,0001,20,000
 1,00,0001,20,000 1,00,0001,20,000

Partner’s Capital Account

Particulars 

 Meenu Rs. 

Joy Rs.Particulars Meenu Rs. Joy Rs.
To Drawings Account10,00010,000By Balance b/d10,00012,000
To Balance c/d14,78832,484To Joy’s Salary A/C12,000
   By P & L App. A/c14,78818,484
 24,78842,484 24,78842,484

(ii) When Capitals are fluctuating:

Partner’s Capital Account

Particulars 

 Meenu Rs. 

Joy Rs.Particulars Meenu Rs. Joy Rs.
To Drawings Account10,00010,000By Balance b/d1,00,0001,20,000
To Balance c/d1,14,7881,52,484By Interest on Capital10,00012,000
   To Joy’s Salary A/C12,000
   By P & L App. A/c14,78818,484
 1,24,7881,62,484 1,24,7881,62,484

Thanks, Please Like and share with your friends  

Comment if you have any questions.

Advertisement-X

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)

Advertisement-X

Advertisement-Y

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

Advertisement-X

Chapter No. 2 – Financial Statement Analysis

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

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

Advertisement

Advertisement

error: Content is protected !!