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Question 27 Chapter 2 of Class 12 Part – 1 VK Publication

Question 27 Chapter 2 of Class 12 Part - 1 VK Publication
Question 27 Chapter 2 of Class 12 Part - 1 VK Publication

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Question 27 Chapter 2 of Class 12 Part – 1

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27. Somu and Monu are partners sharing profits and losses in the ratio of 4:1. Somu and Monu contributed capitals Rs. 4,00,000 and Rs. 3,00,000 in the firm respectively. The partners are entitled for salary Rs. 40,000 and Rs. 25,000 respectively. Profit before providing for appropriations was Rs. 60,000 for the year ended 31st March, 2018. Prepare profit and Loss Appropriation Account for the year ended 31st March, 2018. Interest on capital @5% is provided.

The solution of Question 27 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

(For the year ended 31st March, 2018)

Particulars 
 
AmountParticulars 
 
Amount
To Sonu’s Capital A/c36,000By Profit and Loss A/c60,000
To Sonu’s Capital A/c24,000  
 60,000 60,000

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Working Notes:
Interest on Capitals:
Sonu = 4,00,000 x 5/100 = Rs. 20,000; Monu = 3,00,000 × 5/100 = Rs. 15,000
Salaries of Partners:
Sonu = Rs. 40,000, Monu = Rs. 25,000
Total amount of appropriations is Rs. 1,00,000 (i.e., 20,000 + 15,000 + 40,000 + 25,000)
Profit for the year is Rs. 60,000.
Therefore, the available profit is distributed in the ratio of appropriations to be made to Sonu and Monu.
Sonu = 20,000+ 40,000 = Rs. 60,000.
Monu = 15,000+25,000 = Rs. 40,000
Ratio of appropriations to be made to Sonu and Monu = 60,000: 40,000 or 3 : 2.

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

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

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I (Introduction)

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Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)

Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

Chapter No. 8 – Company Accounts (Share Capital)

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Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

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

Chapter No. 1 – Financial Statements of a Company

Chapter No. 2 – Financial Statement Analysis

Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size

Chapter No. 4 – Ratio Analysis

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Chapter No. 5 – Cash Flow Statement

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms 

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