Question 32 Chapter 3 – Unimax Class 12 Part 1 – 2021

Question 32 Chapter 3 - Unimax Class 12 Part 1 - 2021

Question 32 Chapter 3 – Unimax Class 12 Part 1

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to be calculated on the capital of each partner and B is to be allowed an annual salary of Rs. 2400 which has not been withdrawn.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 :
(1)The Profit and Loss Appropriation Account showing the allocation of profits.
(2)Partners’ Capital Accounts when Capitals are fluctuating.

The solution of Question 32 Chapter 3 – Unimax Class 12 Part 1:

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

Particulars   Rs. Particulars Rs.
To B’s salary 2400   By Net Profit (Before Charging Salary) 10400
To A’s Commission 540      
To Interest on Capital        
– A 750      
– B 500 1250    
To Profit transferred to capital A/c        
– A 4347      
– B 1863 6210    
         
    10400   10400

Capital Accounts

Particulars A B Particulars A B
To Balance c/d 19437 12763 By Balance b/d 15000 10000
To drawings A/c 1200 2000 By Interest on capital A/c 750 500
      By Commission A/c 540 – 
      By Salary A/c –  2400
      By Profit A/c 4347 1863
  20637 14763   20637 14763

 

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Your email address will not be published.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 *