# Question 28 Chapter 3 – Unimax Class 12 Part 1 – 2021

Question 28 Chapter 3 – 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.

## The solution of Question 28 Chapter 3 – Unimax Class 12 Part 1:

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 X Y Particulars X Y 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.

What is Partnership – Meaning and its Types

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