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Question 20 Chapter 2 of Class 12 Part – 1 VK Publication

Question 20 Chapter 2 of Class 12 Part - 1 VK Publication
Question 20 Chapter 2 of Class 12 Part - 1 VK Publication

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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 
 
AmountParticulars 
 
Amount
To Depreciation on Machinery2,000By Profit b/d36,000
To Bad Debt1,000  
To Manager’s Commission A/c (33,000 x 10/110)3,000  
To Profit Transferred to Profit and Loss Appropriation A/c30,000  
 36,000 36,000

Profit and Loss Appreciation Account

Particulars 
 
AmountParticulars 
 
Amount
To Interest On Capital A/C:  By Profit and Loss A/c30,000
P10,000   
Q6,00016,000  
To Q’s Salary A/C 6,000  
To Profit Transferred To Capital A/C’s    
P4,800   
Q3,2008,000  
  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/d1,00,00060,000By Balance b/d1,00,00060,000
 1,00,00060,000 1,00,00060,000

Partner’s Capital Account

Particulars 

 P Rs. 

Q Rs.Particulars P Rs. Q Rs.
To Drawings Account10,00010,000By Balance b/d10,0006,000
To Balance c/d2,8003,200To Salary A/C6,000
   By P & L App. A/c4,8003,200
 14,80015,200 14,80015,200

(ii) Fluctuating Capitals Accounts:

Partner’s Capital Account

Particulars 

 P Rs. 

Q Rs.Particulars P Rs. Q Rs.
To Drawings Account12,00012,000By Balance b/d1,00,00060,000
To Balance c/d1,02,80063,200By Interest on Capital10,0006,000
   To Salary A/C6,000
   By P & L App. A/c4,8003,200
 1,14,80075,200 1,14,80075,200

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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

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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