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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 - 2021

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Question 28 Chapter 2 – Unimax Class 12 Part 1

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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
– Varun18000 By int. on drawings A/c  
– Sahil1200030000– Varun900 
To Salary A/c  – Sahil6001500
– Varun7200    
– Sahil840015600   
To Profit transferred to capital A/cs     
– Varun22600    
– Sahil1130033900   
  79500  79500

Capital Accounts

ParticularsVarunSahilParticularsVarunSahil
To Drawings A/c3000020000By Balance b/d300000200000
To Interest on Drawings A/c900600By Interest on capital A/c1800012000
To Bal c/d316900211100   
   By Salary A/c72008400
   By Profit A/c2260011300
 347800231700 347800231700

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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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