Question 22 Chapter 2 of Class 12 Part – 1
22. Salim and Javed are partners from 1st April, 2017 with capitals of Rs. 40,000 and Rs. 55,000 ( 1st October, 2017; Salim advances 10,000 by way of loan to the firm without any agreement as to interest. They earned a net profit of Rs. 9,600 prior to interest on capital @ 6% p.a. and on loan. Show the Profit and Loss Appropriation Account charging interest on capital and loan for the year ending 31st March, 2018.
The solution of Question 22 Chapter 2 of Class 12 Part – 1: –
Profit and Loss Appreciation Account
For the year ended 31st March 2018
| Particulars |
Amount | Particulars |
Amount | |
| To Interest On Capital A/C: | By Profit and Loss A/c [ 9,600 – 300 ( Interest on Salim’s Loan)] |
9,300 | ||
| Salim | 2,400 | |||
| Javed | 2,100 | 4,500 | ||
| To Profit Transferred To Capital A/C’s | ||||
| Salim | 2,400 | |||
| Javed | 2,400 | 4,800 | ||
| 9,300 | 9,300 | |||
Note: Interest on Salim’s Loan has been charged for 6 Months
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Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Chapter No. 1 – Accounting Not for Profit Organisations
Chapter No. 2 – Partnership Accounts – I (Introduction)
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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
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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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