# Question 22 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 22 Chapter 2 – Unimax Class 12 Part 1

22. A and B are partners sharing profits in the ration of 3 : 2 with capitals of Rs. 50000 and Rs. 30000 respectively. Interest on Capital is agreed at 6% per annum. B is to be allowed an annual salary of Rs. 2500. During 2021 the profits of the year prior to calculation of interest on capital but after charging B’s salary amounted to Rs. 12500.
A provision of 5% of the profits (before charging any commission) is to be made in respect of A’s Commission.
Prepare an account showing allocation of profits and partners’ capital accounts.

## The solution of Question 22 Chapter 2 – Unimax Class 12 Part 1:

Profit & Loss of proprition A/c For the year ended 31st Dec., 2006

 Particulars Rs. Particulars Rs. To Interest on Capital By Net Profit 12500 A 3000 B 1800 4800 To A’s Capital A/c (Commission) (Rs. 12500 – Rs. 4800) x 5/100 385 To Profit transferred to capital A/cs A 4389 B 2926 7315 12500 12500

Capital Accounts

 Particulars A B Particulars A B To Balance o/d 57774 37226 By Balance b/d 50000 30000 By Interest on capital 3000 1800 By Commission A/c 385 – By Salary A/c – 2500 By Profit & Loss appropriation A/c 4389 2926 57774 37226 57774 37226

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)