Question 31 Chapter 3 - Unimax Class 12 Part 1 - 2021

Question 31 Chapter 3 – Unimax Class 12 Part 1

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The solution of Question 31 Chapter 3 – Unimax Class 12 Part 1:

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

31. Kanu and Shruti are partners sharing profits in the ration of 3 : 2. Their opening Capitals are Rs. 75000 and Rs. 50000 respectively. Interest on Capital is agreed @ 8% per annum. Shruti is to be allowed an annual Salary of Rs. 6000. During 2021 the profits of firm prior to Calculation of interest on capital and before charging Shruti’s salary amounted to Rs. 22000. A provision of 5% of given profits is to be made in respect of manager’s commission.
You are required to make Profit and Loss Appropriation Account and Partners’ Capital Accounts.

The solution of Question 31 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

22000

– Kanu

6000

– Sharuti

4000

10000

To Sharuti’s Salary A/c

To Manager’s Commission A/c

[	22000 x	5	]
		10

To Profit transferred to capital A/cs

– Kanu (3/5)

2940

– Sharuti (2/5)

1960

4900

22000

Capital Accounts

Particulars	Kanu	Sharuti	Particulars	Kanu	Sharuti
To Balance c/d	83940	61960	By Balance b/d	75000	50000
			By Interest on capital A/c	6000	4000
			By Salary A/c	–	6000
			By Profit & Loss Appropriation A/c (Profit)	2940	1960
	83940	61960		83940	83940