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

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

Question 31 Chapter 3 – Unimax Class 12 Part 1

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   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

 

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

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