# 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

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/c 49,280 A on 40,000 4,800 By interest on Drawings of B @ 12% p.a. on 6,000 720 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 2/3 27,300 B 1/3 9,100 36,400 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:

Profit and Loss Appreciation Account

 Particulars Amount Particulars Amount To Interest on Capital A/c: By Profit and Loss A/c 48,680 A 12% on 40,000 4,800 [49,280-600 ( Interest on B’s Loan @ 6% p.a.)] B12% on 20,000 2,400 By Interest on B’s Drawings @12% pa. on Rs. 6,000 for six months 360 To Profit transferred to Capital A/cs A 20,920 B 20,920 41,840 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

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)

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

Chapter No. 4 – Ratio Analysis