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Question 20 Chapter 2 of Class 12 Part – 1
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20. P and Q are partners sharing profits in the ratio of 3:2 with capitals of Rs. 1,00,000 and Rs. 60,000 respectively. Interest on capital is agreed at 10% per annum. Q is to be allowed an annual salary of Rs. 6,000. During the year, they withdrew Rs. 12,000 each. Profit for the year amounted to Rs. 36,000, prior to interest on capital and before charging depreciation at 10% on furniture valued Rs. 20,000 and before writing off bad debts of Rs. 1,000. Manager is to be allowed a commission of 10% after charging such commission. Prepare Partners’ Capital Accounts when: (i) Capital Accounts are fixed, (ii) Capital Accounts are fluctuating.
The solution of Question 20 Chapter 2 of Class 12 Part – 1: –
Profit and Loss Account
Particulars |
Amount | Particulars |
Amount |
To Depreciation on Machinery | 2,000 | By Profit b/d | 36,000 |
To Bad Debt | 1,000 | ||
To Manager’s Commission A/c (33,000 x 10/110) | 3,000 | ||
To Profit Transferred to Profit and Loss Appropriation A/c | 30,000 | ||
36,000 | 36,000 |
Profit and Loss Appreciation Account
Particulars |
Amount | Particulars |
Amount | |
To Interest On Capital A/C: | By Profit and Loss A/c | 30,000 | ||
P | 10,000 | |||
Q | 6,000 | 16,000 | ||
To Q’s Salary A/C | 6,000 | |||
To Profit Transferred To Capital A/C’s | ||||
P | 4,800 | |||
Q | 3,200 | 8,000 | ||
30,000 | 30,000 |
Case: (i) Fixed Capitals Accounts:
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Partner’s Capital Account
Particulars |
P Rs. |
Q Rs. | Particulars | P Rs. | Q Rs. |
To Balance c/d | 1,00,000 | 60,000 | By Balance b/d | 1,00,000 | 60,000 |
1,00,000 | 60,000 | 1,00,000 | 60,000 |
Partner’s Capital Account
Particulars |
P Rs. |
Q Rs. | Particulars | P Rs. | Q Rs. |
To Drawings Account | 10,000 | 10,000 | By Balance b/d | 10,000 | 6,000 |
To Balance c/d | 2,800 | 3,200 | To Salary A/C | – | 6,000 |
By P & L App. A/c | 4,800 | 3,200 | |||
14,800 | 15,200 | 14,800 | 15,200 |
(ii) Fluctuating Capitals Accounts:
Partner’s Capital Account
Particulars |
P Rs. |
Q Rs. | Particulars | P Rs. | Q Rs. |
To Drawings Account | 12,000 | 12,000 | By Balance b/d | 1,00,000 | 60,000 |
To Balance c/d | 1,02,800 | 63,200 | By Interest on Capital | 10,000 | 6,000 |
To Salary A/C | – | 6,000 | |||
By P & L App. A/c | 4,800 | 3,200 | |||
1,14,800 | 75,200 | 1,14,800 | 75,200 |
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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)
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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
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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
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