Question 24 Chapter 2 of Class 12 Part - 1 VK Publication

Question 24 Chapter 2 of Class 12 Part – 1

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The solution of Question 24 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

24. Ahts and Behl entered into partnership on 1st April, 2017 without any partnership deed. They introduced capitals of Rs. 9,00,000 and Rs. 5,40,000 respectively. On 31st October 2018. Ahts advanced Rs. 3,60,000 by way of loan to the firm without any agreement as to Interest.
The Profit and Loss Account for the year ended 31.3.2018 showed a profit of Rs. 7,74,000 but the partners could not agree upon the amount of interest on loan to be charged and basis of division of profits. Pass a journal entry for the distribution of the profit between partners and prepare the Capital Accounts of both the partners and Loan Account of ‘Ahts’.

The solution of Question 24 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

Particulars		Amount	Particulars	Amount
To Ahts’s on Capital A/c:	3,82,500		By Net Profit ( 7,74,000 after interest on loan – 9,000)	7,65,000
To Behls’s on Capital A/c:	3,82,500	7,65,000
		7,65,000		7,65,000

Partner Capital Account

Particulars	Ahts’s Rs.	Behls’s Rs.	Particulars	Ahts’s Rs.	Behls’s Rs.
(31-3-18) To Balance c/d	12,82,500	9,22,500	(1-4-17) By Bank A/c	9,00,000	5,70,000
			(31-3-18) By P & L App. A/c	3,82,500	3,82,500
	12,82,500	9,22,500		12,82,500	9,22,500

Journal Entry

Date	Particulars		L . F	Dr. ₹	Cr. ₹
	Profit and Loss Appropriation A/c	Dr.		7,65,000
	To Ahts’s Current A/c				3,82,500
	To Behl’s Current A/c				3,82,500
	(Being profit distributed among the partners)

Ahts’s Capital Account

Particulars	Behls’s Rs.	Particulars	Behls’s Rs.
(31-3-18) To Balance c/d	3,69,000	(31-10-17) By Bank A/c	3,60,000
		(31-03-18) By Interest on Loan A/c	9,000
	3,69,000		3,69,000