Question 23 Chapter 2 of Class 12 Part - 1 VK Publication

Question 23 Chapter 2 of Class 12 Part – 1

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The solution of Question 23 Chapter 2 of Class 12 Part – 1: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

23. The capital accounts of Ganga and Yamuna show balance of Rs.40,000 and Rs. 20,000 on 1st April, 2017. They shared profits in the ratio of 3:2. They are allowed interest on capital @ 10% p.a. and are charged interest on drawings @12% pa. Each partner is allowed a salary of Rs. 6,000 pa. On 1st August, 2017, Ganga advanced a loan of Rs. 10,000 to the firm During the year Ganga withdraw Rs. 1,000 per month in the beginning of every end whereas Yamuna withdraw Rs 1,000 per month at the end of every month. The proliti year, before the above mentioned adjustments were Rs. 32,960. Show the distribution of profit and prepare partners’ capital accounts as on 31st March, 2018.

The solution of Question 23 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

For the year ended 31st March 2017

Particulars		Amount	Particulars		Amount
To Interest on Capital A/c:			By Net Profit		32,560
Ganga	4,000
Yamuna	2,000	6,000	By Interest on Drawings
To Partner’s Salary A/C			Ganga	780
Ganga	6,000		Yamuna	660	1,440
Yamuna	6,000	12,000
To Profit Transferred To Capital A/C’s
Ganga	9,600
Yamuna	6,400	16,000
		34,000			34,000

Partner’s Capital Account

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Particulars	Ganga Rs.	Yamuna Rs.	Particulars	Ganga Rs.	Yamuna Rs.
To Drawings Account	12,000	12,000	By Balance b/d	40,000	20,000
To Interest on Drawings	780	660	By Interest on Capital	4,000	2,000
To Balance c/d	46,820	21,740	By Salaries A/c	6,000	6,000
			By P & L App. A/c	9,600	6,400
	59,600	34,400		59,600	34,400

Working Notes:
(1) Calculation of Interest on Ganga’s Loan = 10,000×6/100×8/12 = Rs. 400
(2) Calculation of Interest on Drawings:
Ganga = 12,000 ×12/100×(6 1⁄2)/12= Rs. 780
Yamuna = 12,000 ×12/100×(5 1⁄2)/12 = Rs. 660

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