# Question 23 Chapter 2 of Class 12 Part – 1 VK Publication

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

Question 23 Chapter 2 of Class 12 Part – 1

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

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

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

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I (Introduction)

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

Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size

Chapter No. 4 – Ratio Analysis