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Question 34 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 34 Chapter 2 - Unimax Class 12 Part 1 - 2021
Question 34 Chapter 2 - Unimax Class 12 Part 1 - 2021

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Question 34 Chapter 2 – Unimax Class 12 Part 1

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34. A and B are partners sharing profit in the ratio of 3 : 2 with Opening Capitals of Rs. 50000 and Rs. 30000 respectively. Interest on Capital is agreed @ 6% per annum. B is to be allowed an annual salary of Rs. 2500. During the year ended 31st March, 2021 the profits of year prior to calculation of interest on Capital but after charging B’s salary amounted to Rs. 12500. A provision of 5% of the profits after charging interest on capital salary is to be made in respect of the A’s commission. Prepare an account showing the allocation of profits. Also prepare partner’s Capital Accounts and current accounts. Current account balances on 1st April, 2020 were A Rs. 2000 (Cr.) ; B Rs. 1500 (Dr.).

The solution of Question 34 Chapter 2 – Unimax Class 12 Part 1:

Profit & Loss of Apropriation A/c For the year ended 31st March., 2021

Particulars Rs.Particulars   Rs.
To Interest on Capital  By Net Profit12500
– A3000   
– B18004800  
To Profit A/c    
– A4389   
– B29267315  
  385  
  12500 12500

Partner’s Capital Accounts

DateParticularsABDateParticularsAB
31-3-21To Balance c/d50000300001-4-2020By Balance b/d5000030000

Partner’s Capital Accounts

ParticularsABParticularsAB
To Bal b/d 1500By Balance b/d2000 
To Bal c/d97745726By Profit & Loss App. A/c (Profit)43892926
   By int. on cap.30001800
   By Salary A/c– 2500
   By Commission385– 
 97747226 97747226

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Working Notes :
(1) A’s Commission = (12500 – 300 – 1800) 5% = Rs. 385
(2) Calculation of profit
A’s Share of profit
A’s Share of profit = 7315 x3/5= 4389
B’s Share of profit = 7315 x2/5= 2926

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

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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