Question 25 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 25 Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 25 Chapter 2 – Unimax Class 12 Part 1

25. X and Y started business on 1st January, 2021 with capitals of Rs. 60000 and Rs. 30000 respectively. They decided to share profits in the capital ratio. You are given the following details.

Year 2021 Capital Introduced Capital Introduced
X (Rs.) Y (Rs.) X (Rs.) Y (Rs.)
30th April –  7500 15000 –  
30th June 15000 5000 –   5000
1st September –  9000 2500 –  
30th September –  12000 –   –  
1st November 5000 –   –   1000

The profit for the year 2021 amounted to Rs. 75000. Show the distribution of profit.

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

X’s Capital Months for which capital has been used Product
(Rs.)
X’s Capital Months for which capital has been used Product (Rs.)
60000 4 240000 30000 4 4120000
45000 2 90000 37500 2 75000
60000 2 120000 32500 2 65000
57500 2 115000 41500 1 41500
62500 2 125000 53500 1 53500
      52500 2 105000
Total   690000     460000

Capital Ratio = 690000 : 460000
                      = 3 : 2

Profit & Loss Appropriation Account For the year ending Dec. 31, 2021.

Particulars   Rs. Particulars Rs.
To Profit transferred to Capital A/c     By Net Profit 75000
– X (3/5) 45000      
– Y (2/5) 30000 75000    
         
    75000   75000

https://tutorstips.com/not-for-profit-organisations/

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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

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