Question 28 Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 28 Chapter 2 – Unimax Class 12 Part 1

Table of Contents

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

28. Varun and Sahil are partners in a firm. Their capitals on 1st April, 2020 were Rs. 300000 and Rs. 200000 and their profit sharing ratio is 2 : 1. Profits earned for year 2020-21 is Rs. 78000. Their drawings were Rs. 30000 and Rs. 20000. Prepare a Profit and Loss Appropriation Account and Partner’s Capital Accounts after taking into consideration the following facts :
(i) Interest on Capital is payable at 6% per annum.
(ii) Salaries : Varun = Rs. 600 per month ; Sahil = Rs. 700 per month.
(iii) Interest on Drawings is to be charged at 6% per annum.

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Profit & Loss of Apropriation A/c For the year ended 31st March., 2021

Particulars		Rs.	Particulars		Rs.
To Interest on Capital			By Net Profit		78000
– Varun	18000		By int. on drawings A/c
– Sahil	12000	30000	– Varun	900
To Salary A/c			– Sahil	600	1500
– Varun	7200
– Sahil	8400	15600
To Profit transferred to capital A/cs
– Varun	22600
– Sahil	11300	33900
		79500			79500

Capital Accounts

Particulars	Varun	Sahil	Particulars	Varun	Sahil
To Drawings A/c	30000	20000	By Balance b/d	300000	200000
To Interest on Drawings A/c	900	600	By Interest on capital A/c	18000	12000
To Bal c/d	316900	211100
			By Salary A/c	7200	8400
			By Profit A/c	22600	11300
	347800	231700		347800	231700

Working Note :
Calculation of Interest on Drawings

Varun : Rs. 30000 x 6/100 x 6/12 = Rs. 900
Sahil : Rs. 20000 x 6/100 x 6/12 = Rs. 600
Note : Since date of drawings is not given, interest has been calculated for 6 months.

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