Question 20 Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 20 Chapter 2 – Unimax Class 12 Part 1

Table of Contents

The solution of Question 20 Chapter 2 – Unimax Class 12 Part 1:

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

20. P and Q are partners sharing profits and losses in ration of 2 : 1 with capitals of Rs. 200000 and Rs. 100000 respectively. On 1st October, 2020, P and Q both granted loans of Rs. 80000 and Rs. 60000 respectively to the firm. Show the distribution of profits and losses for the year ending 31st March, 2021 in each of following cases.
Case 1 : If profit before charging any interest amounted to Rs. 10200.
Case 2 : If profit before charging any interest amounted to Rs. 3600.
Case 3 : If losses before charging any interest are Rs. 1800.

The solution of Question 20 Chapter 2 – Unimax Class 12 Part 1:

Profit & Loss Account For the year ended March. 31, 2006.

Particulars		Rs.	Particulars	Rs.
To Interest on loan – A	2400		By Net Profit	10200
– B	1800	4200

To Profit transferred to Capital A/c
– P	4000
– Q	2000	6000
		10,200		10,200

Case II.

Profit & Loss Account For the year ended March. 31, 2006.

Particulars		Rs.	Particulars		Rs.
To Interest on loan			By Net Profit		3600
– X	2400		By Net Loss transferred to Capital A/c
– Y	1800	4200	– P	400
			-Q	200	600

		4200			4200

Case III.

Profit & Loss Account For the year ended March. 31, 2006.

Particulars		Rs.	Particulars		Rs.
To Net Loss		1800	By Net Loss transferred to Capital A/c
To Interest on loan			– P	4000
– X	2400		-Q	2000	6000
– Y	1800	4200
		6000			6000

Working Notes:

Calculation of Interest on Loan :

X = Rs. 80000 x 6% x 6/12 = Rs. 2400
Y = Rs. 60000 x 6% x 6/12 = Rs. 1800
Note : Interest @ 6% p.a. is allowed on loans granted by partners, when partnership agreement is made.

Advertisement-X

https://tutorstips.com/not-for-profit-organisations/

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)