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Question 32 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 32 Chapter 2 - Unimax Class 12 Part 1 - 2021
Question 32 Chapter 2 - Unimax Class 12 Part 1 - 2021

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Question 32 Chapter 2 – Unimax Class 12 Part 1

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32. A and B are partners sharing profit in proportion of 1/10th and 3/10th with capitals of Rs. 15000 and Rs. 10000 respectively as on 1st Jan., 2021. 5% interest was agreed to be calculated on the capital of each partner and B is to be allowed an annual salary of Rs. 2400 which has not been withdrawn. During the year 2021, A withdrew Rs. 1200 and B Rs. 2000 in anticipation of profits. Profits for the year prior to calculation of interest on capital but after charging B’s salary amounted to Rs. 8000. A provision of 8% of the profits after charging interest and salary but before charging any commission is to be made in respect of commission to A.
Show :
The Profit and Loss Appropriation Account showing the allocation of profits.
Partners’ Capital Accounts when Capitals are fluctuating.

The solution of Question 32 Chapter 2 – Unimax Class 12 Part 1:

Profit & Loss of Appropriation A/c For the year ended Dec. 31, 2021

Particulars Rs.ParticularsRs.
To B’s salary2400 By Net Profit (Before Charging Salary)10400
To A’s Commission540   
To Interest on Capital    
– A750   
– B5001250  
To Profit transferred to capital A/c    
– A4347   
– B18636210  
  10400 10400

Capital Accounts

ParticularsMoonStarParticularsMoonStar
To Balance c/d1943712763By Balance b/d1500010000
To drawings A/c12002000By Interest on capital A/c750500
   By Commission A/c540– 
   By Salary A/c– 2400
   By Profit A/c43471863
 2063714763 2063714763

https://tutorstips.com/not-for-profit-organisations/

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