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

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 Profit 12500
– A 3000      
– B 1800 4800    
To Profit A/c        
– A 4389      
– B 2926 7315    
    385    
    12500   12500

Partner’s Capital Accounts

Date Particulars A B Date Particulars A B
31-3-21 To Balance c/d 50000 30000 1-4-2020 By Balance b/d 50000 30000

Partner’s Capital Accounts

Particulars A B Particulars A B
To Bal b/d   1500 By Balance b/d 2000  
To Bal c/d 9774 5726 By Profit & Loss App. A/c (Profit) 4389 2926
      By int. on cap. 3000 1800
      By Salary A/c –  2500
      By Commission 385 – 
  9774 7226   9774 7226

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

Leave a Reply

Your email address will not be published. Required fields are marked *