Question 27 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 27 Chapter 2 of +2- Part-

Question 27 Chapter 2 of +2-Part-1

27. Money and Rupee are partners sharing profits in the ratio of 2:1. Their capitals were Rs.1,20,000 and Rs. 90,000 respectively.
Show the distribution of profits/losses in each of the following alternative cases:
Case A: Profits are Rs.45,000 and deed is silent as regards interest on capital.
Case B: Profits are Rs.45,000 and deed provides for interest on capital @10% p.a.
Case C: Profits are Rs.16,800 and deed provides for interest on capital @10% p.a.
Case D: Profit is Rs.16,800 and deed provides for interest on capital @10% p.a. even there is a loss.
Case E: Loss is Rs.6,000 and deed provides for interest on capital @10% p.a. even there is a loss.

 

The solution of Question 27 Chapter 2 of +2 Part-1: – 

Case – A :

Money’s Share in profit 2/3 i.e. Rs.30,000
Rupee’s Share in profit 1/3 i.e. Rs.15,000
Note: No interest on capital will be allowed.

Case – B :

Net profit after interest on Capitals:
Rs.(45,000-12,000-9,000) = Rs.24,000
Money’s Share in profit (2/3 of Rs.24,000) i.e. Rs.16,000
Rupee’s Share in profit (1/3 of Rs.24,000) i.e. Rs.15,000

Case – C :

Net profit after interest on Capitals:
Rs.(12,000+9,000-16,800) = Rs.4,200,
Money’s Share of loss on Capital ratio = (Rs.4,200*4/7) i.e. Rs.2,400
Rupee’s Share of loss on Capital ratio = (Rs.4,200*3/7) i.e. Rs.1,800
Money’s Share in profit = Interest on Capital (12,000-2,400) = Rs.9,600


Rupee’s Share in profit = Interest on Capital (9,000-1,800) = Rs.7,200

Case – D :

 
  Particulars
   
  Interest on Capital:      
  -Money   12,000  
  -Rupee   9,000 21,000
  Less: Net Profit     16,800
  Net Loss     4,200

Money’s Share of loss =2/3*4,200 i.e. Rs.2,800
Rupee’s Share in loss= 1/3*4,200 i.e. Rs.1,400

Case – E :

  Particulars
   
  Interest on Capital:      
  -Money   12,000  
  -Rupee   9,000 21,000
  Less: Net Profit     6,000
  Net Loss     27,000

Money’s Share of loss =2/3*27,000 i.e. Rs.18,000
Rupee’s Share in loss= 1/3*27,000 i.e. Rs.9,000

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

 

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2 Book 1 min - Question 27 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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