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

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

Question 28 Chapter 2 – Unimax Class 12 Part 1

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.

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.

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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