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Question 33 Chapter 2 of +2-Part-1
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33. (Profit & Loss App. A/c / Current a/c/ Interest on Drawings) A B and C are partners with fixed capitals of Rs.30,000. Rs.20,000 and Rs.10,000 respectively. They share profit and losses n the ratio of 3:2:1. Interest on Drawings is to be charged at the rate of 10% p.a. The capitals are also to be allowed interest @9% p.a.
The balance of current accounts on 1st Jan 2019 was A-Rs.16,000(Cr.), B- Rs.12,000(Cr.) and C-Rs.800(Dr.) Their drawings during the year were A-Rs.1200; B-Rs.1,000 and C- Rs.800. The profit of the year was Rs.17,130 before adjustment for interest as above.
Show the distribution of profit and draw up the capital and current accounts of the partners.
The solution of Question 33 Chapter 2 of +2 Part-1: –
| Profit and Loss Appropriation Account A/c | |||||
| Particulars | Amount | Particulars | Amount | ||
| To Interest on capital – | By Profit b/d | 17,130 | |||
| A | 2,700 | By interest on drawings: | |||
| B | 1,800 | A | 108 | ||
| C | 900 | 5,400 | B | 90 | |
| C | 72 | 270 | |||
| To Net profit transferred to Capital a/cs | |||||
| -A (1/2) | 6,000 | ||||
| -B (1/3) | 4,000 | ||||
| -C (1/6) | 2,000 | 12,000 | |||
| 17,400 | 17,400 | ||||
| Partners’ Current Accounts | |||||||||
| Particulars | A | B | C | Particulars | A | B | C | ||
| To balance b/d | – | – | 800 | By Balance B/d | 16,000 | 12,000 | – | ||
| To Drawings A/c | 1,200 | 1,000 | 800 | By Interest on Capital A/c | 2,700 | 1,800 | 900 | ||
| To Interest on Drawings A/c | 108 | 90 | 72 | By net profit | 6,000 | 4,000 | 2,000 | ||
| To Balance c/d | 23,392 | 16,710 | 1,228 | ||||||
| 27,700 | 17,800 | 2,900 | 27,700 | 17,800 | 2,900 | ||||
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
