Question 25 Chapter 2 of Class 12 Part - 1 VK Publication

Question 25 Chapter 2 of Class 12 Part – 1

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The solution of Question 25 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

25. Mina and Tina are partners sharing profits and losses in the ratio of 4:1 with capital contribution of Rs. 50,000 and Rs.75,000 respectively. The partnership firm is working in the premises owned by Tina.
Monthly rent of Rs. 8,000 is fixed for the premises.
Show the distribution of profits/losses for the year ending on 31st March, 2018 in the following cases:
(a) If the profits for the year before charging rent of premises are Rs. 1,32,000.
(b) If the profits for the year before charging rent of premises are Rs. 64,000
(c) If the loss for the year before charging rent of premises are Rs. 40,000.

The solution of Question 25 Chapter 2 of Class 12 Part – 1: –

Case a:

Profit and Loss Account

Particulars	Amount	Particulars	Amount
To Rent Of Premises A/C ( 8,000 x 12)	96,000	By Profit b/d	1,32,000
To Profit and Loss Appropriation A/c	36,000
	1,32,000		1,32,000

Profit and Loss Appreciation Account

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Particulars		Amount	Particulars	Amount
To Profit Transferred To Capital A/C’s			By Profit and Loss A/c	36,000
Mina	28,800
Tina	7,200	36,000
		36,000		36,000

Case b:

Profit and Loss Account

Particulars	Amount	Particulars		Amount
To Rent Of Premises A/C ( 8,000 x 12)	96,000	By Profit b/d		64,000
		By loss Transferred to Partner’s Capital A/cs:
		Mina	25,600
		Tina	6,400	32,000
	96,000			96,000

Case c:

Profit and Loss Account

Particulars	Amount	Particulars		Amount
To Loss b/d	40,000	By loss Transferred to Partner’s Capital A/cs:
To Rent Of Premises A/C	96,000	Mina	1,08,800
		Tina	27,200	1,36,000
	1,36,000			1,36,000