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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 VK Publication

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Question 23 Chapter 2 of Class 12 Part – 1

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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 
 
AmountParticulars 
 
Amount
To Interest on Capital A/c:  By Net Profit 32,560
Ganga4,000    
Yamuna2,0006,000By Interest on Drawings  
To Partner’s Salary A/C  Ganga780 
Ganga6,000 Yamuna6601,440
Yamuna6,00012,000   
To Profit Transferred To Capital A/C’s     
Ganga9,600    
Yamuna6,40016,000   
  34,000  34,000

Partner’s Capital Account

Particulars 
 
Ganga Rs.Yamuna Rs.Particulars 
 
Ganga Rs.Yamuna Rs.
To Drawings Account12,00012,000By Balance b/d40,00020,000
To Interest on Drawings780660By Interest on Capital4,0002,000
To Balance c/d46,82021,740By Salaries A/c6,0006,000
   By P & L App. A/c9,6006,400
 59,60034,400 59,60034,400

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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)

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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)

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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

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Chapter No. 5 – Cash Flow Statement

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms 

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