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

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

Question 20 Chapter 2 – Unimax Class 12 Part 1

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.

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)

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

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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