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

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

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Question 2 Chapter 2 of Class 12 Part – 1

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2. A and B are partners in a firm. Their partnership deed provides the following only:
Interest on Capital to be allowed @ 12%
Interest on Drawings to be charged @ 12% p.a.
They presented the following Profit and Loss Appropriation Account:
You are required to rectify the mistake and prepare revised Profit and Loss Appropriation Account.

Particulars Rs.Particulars Rs.
To Interest on Capitals @ 12% p.a.  By Profit and Loss A/c49,280
A on 40,000 4,800By interest on Drawings of B @ 12% p.a. on 6,000720
B on 20,000 2,400  
To Interest on B’s Loan @ 4% p.a. 400  
To Salary To A ( for working as manager) 6,000  
To Profit:    
A 2/327,300   
B 1/39,10036,400  
  50,000 50,000

 

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

Rectification of mistakes:
(i) Interest on B’s Loan is to be provided @ 6% pa. and not @ 4% p.a.
(ii) No salary is to be given to partner A for working as manager in the partnership deed
(iii) Cut Profit will be shared by partners in equal ratio.
(iv) Interest on drawings will be charged for an average period of 6 months. Revised Profit and Loss Appropriation Account is given below:

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Profit and Loss Appreciation Account

Particulars  AmountParticulars Amount
To Interest on Capital A/c:  By Profit and Loss A/c48,680
A 12% on 40,000 4,800[49,280-600 ( Interest on B’s Loan @ 6% p.a.)] 
B12% on 20,000 2,400By Interest on B’s Drawings @12% pa. on Rs. 6,000 for six months360
To Profit transferred to Capital A/cs    
A20,920   
B20,92041,840  
  49,040 49,040

 

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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

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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)

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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

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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 

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