Question 30 Chapter 3 - Unimax Class 12 Part 1 - 2021

Question 30 Chapter 3 – Unimax Class 12 Part 1

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The solution of Question 30 Chapter 3 – Unimax Class 12 Part 1:

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

30. Y and Z are partners with opening capitals of Rs. 200000 and Rs. 150000 respectively and their profit sharing ratio is 3 : 2. Interest on Capital is agreed @ 10% per annum. Z is to be allowed an annual salary of Rs. 9600. The profits of the year 2021, before adjustment of interest on capital and before charging salary amounted to Rs. 75000. Y is entitled to a commission of 10% of the profits after deducting salary and interest on capital, but before charging such commission.
Prepare Profit and Loss Appropriation Account and Capital Accounts of Y & Z.

The solution of Question 30 Chapter 3 – Unimax Class 12 Part 1:

Profit & Loss of Appropriation A/c For the year ended

Particulars		Rs.	Particulars	Rs.
To Interest on Capital			By Net Profit	75000
– Y	20000
– Z	15000	35000
To Salary A/c		9600
To Commission A/c		3040
To Profit transferred to capital A/cs
– Y (3/5)	16416
– Z (2/5)	10944	27360
		75000		75000

Capital Accounts

Particulars	X	Y	Particulars	X	Y
To Bal c/d	239456	185444	By Balance b/d	200000	150000
			By Interest on capital A/c	20000	15000
			By Commission A/c	3040
			By Salary A/c	9600
			By Profit & Loss Appropriation A/c (Profit)	16416	10944
	239456	185544		239456	185544