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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 - 2021

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Question 30 Chapter 3 – Unimax Class 12 Part 1

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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.ParticularsRs.
To Interest on Capital  By Net Profit75000
– Y20000   
– Z1500035000  
To Salary A/c 9600  
To Commission A/c 3040  
To Profit transferred to capital A/cs    
– Y (3/5)16416   
– Z (2/5)1094427360  
  75000 75000

Capital Accounts

ParticularsXYParticularsXY
To Bal c/d239456185444By Balance b/d200000150000
   By Interest on capital A/c2000015000
   By Commission A/c3040 
   By Salary A/c9600 
   By Profit & Loss Appropriation A/c (Profit)1641610944
 239456185544 239456185544

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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 4 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

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