Question 23 Chapter 2 of +2-A - T.S. Grewal 12 Class Part

Question 23 Chapter 2 of +2-A

Table of Contents

The solution of Question 23 Chapter 2 of +2-A:

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)

23. Amar, Bhanu, and Charu are partners in a firm. Amar and Bhanu are to get annual salary of 1,20,000 p.a. each as they are fully involved in the business. Net profit for the year is
4,80,000. Determine the share of profit to be credited to each partner.

The solution of Question 23 Chapter 2 of +2-A:

Profit and Loss Appropriation Account A/c for the year ended 31st March 2019
Particulars		Amount	Particulars	Amount
To Salary to partners			By Profit and Loss Adjustment A/c	4,80,000
Amar	1,20,000
Bhanu	1,20,000	2,40,000
To Profit Transferred to *1
Amar’s Current A/c	80,000
Bhanu’s Current A/c	80,000
Charu’s Current A/c	80,000	2,40,000
		4,80,000		4,80,000

Working Note:

*1: -Calculation of share of profit of Amar, Bhanu, and Charu
Profit Sharing Ratio = 1: 1 : 1
Net Profit after interest= 2,40,000
= 2,40,000 X 1/3
Profit share = 80,000/- each
Jay’s Capital = 80,000

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Also, Check out the solved question of previous Chapters: –

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

Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
Chapter No. 3 – Goodwill: Nature and Valuation
Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
Chapter No. 5 – Admission of a Partner
Chapter No. 6 – Retirement/Death of a Partner
Chapter No. 7 – Dissolution of a Partnership Firm

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

Chapter No. 8 – Company Accounts – Accounting for Share Capital
Chapter No. 9 – Company Accounts – Issue of Debentures
Chapter No. 10 – Redemption of Debentures

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

Chapter No. 1 – Financial Statements of a Company
Chapter No. 2 – Financial Statement Analysis
Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
Chapter No. 4 – Accounting Ratios
Chapter No. 5 – Cash Flow Statement

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