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

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

Question 30 Chapter 3 – Unimax Class 12 Part 1

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

Working Note :
Calculation of Commission
= (Rs. 75000 – Rs. 35000 – Rs. 9600) x 10%
= Rs. 30400 x 10%
= Rs. 3040

 

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)

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

Leave a Reply

Your email address will not be published. Required fields are marked *