Question 19 Chapter 2 of Class 12 Part - 1 VK Publication

Question 19 Chapter 2 of Class 12 Part – 1

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The solution of Question 19 Chapter 2 of Class 12 Part – 1: –

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

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

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19. X and Y are partners with capitals of Rs. 1,00,000 and Rs. 80,000 respectively and their profit sharing ratio is 2:1. Interest on capital is agreed @ 12% p.a. Y is to be allowed an annual salary of Rs. 6,000. The profits of the year ended on 31st March, 2018 amounted to Rs. 50,000. Manager is entitled to a commission of 10% of the profits.
Prepare Profit and Loss Appropriation Account and Capital Accounts of Partners.

The solution of Question 19 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 b/d [ 50,000 – 5,000 ( Manager’s Commission)]	45,000
X	12,000
Y	9,600	21,600
To Y’s Salary A/C		6,000
To Profit Transferred To Capital A/C’s
X	11,600
Y	5,800	17,400
		45,000		45,000

Partner’s Capital Account

Particulars	X Rs.	Y Rs.	Particulars	X Rs.	Y Rs.
To Balance c/d	1,23,600	1,01,400	By Balance b/d	1,00,000	80,000
			By Interest on Capital	12,000	9,600
			To Salary A/C	–	6,000
			By P & L App. A/c	11,600	5,800
	1,23,600	1,01,400		1,23,600	1,01,400