Question 26 Chapter 2 of Class 12 Part - 1 VK Publication

Question 26 Chapter 2 of Class 12 Part – 1

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The solution of Question 26 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

26. A and Bare partners sharing profits and losses in the ratio of 2:3 with capital contributions of Rs. 4,00,000 and Rs. 6,00,000 respectively. Firm is working in the premises owned by B. Monthly rent of Rs. 20,000 is fixed for the premises. Show the distribution of profit or loss for the year ending on 31st March, 2018 in the following cases:
(a) If yearly profits before charging rent of premises are Rs. 4,00,000.
(b) If yearly profits before charging rent of premises are Rs. 2,00,000.
(c) 11 yearly loss before charging rent of premises is Rs. 1,20,000.

The solution of Question 26 Chapter 2 of Class 12 Part – 1: –

Case a:

Profit and Loss Account

For the year ended 31st March,2018

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Particulars	Amount	Particulars	Amount
To Rent Of B’s Premises A/C ( 20,000 x 12)	2,40,000	By Profit b/d	4,00,000
To Profit and Loss Appropriation A/c	1,60,000
	4,00,000		4,00,000

Profit and Loss Appreciation Account

For the year ended 31st March, 2018

Particulars		Amount	Particulars	Amount
To Profit Transferred To Capital A/C’s			By Profit and Loss A/c	1,60,000
A	64,000
B	96,000	1,60,000
		1,60,000		1,60,000

Case b:

Profit and Loss Account

For the year ended 31st March, 2018

Particulars	Amount	Particulars		Amount
To Rent Of B’s Premises A/C ( 20,000 x 12)	2,40,000	By Profit b/d		2,00,000
		By loss Transferred to Partner’s Capital A/cs:
		A	16,000
		B	24,000	40,000
	2,40,000			2,40,000

Case c:

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Profit and Loss Account

For the year ended 31st March, 2018

Particulars	Amount	Particulars		Amount
To Loss b/d	1,20,000	By loss Transferred to Partner’s Capital A/cs:
To Rent Of Premises A/C	2,40,000	A	1,44,000
		B	2,16,000	3,60,000
	3,60,000			3,60,000