Question 35 Chapter 2 of +2-Part-1
Table of Contents
35. (Interest on Laon/Different cases) Sad and Happy are partners in 2:1 ratio. On 1st April,2016 they gave loan of Rs.50,000 and Rs.40,000 to the firm. Show the distribution of profits in the following cases for the year ended 31.3.2016 :
(a) Profit before interest Rs.6,900.
(b) Profit before interest Rs.4,500.
(c) Loss before interest Rs.600.
The solution of Question 35 Chapter 2 of +2 Part-1: –
Case(a) : Profit before interest Rs.6,900
| Profit and Loss Account A/c |
|||||
| Particulars |
Amount | Particulars |
Amount | ||
| To Interest on the loan | By Profit before interest | 6,900 | |||
| Sad (50,000*6%) | 3,000 | ||||
| -Happy (50,000*6%) | 2,400 | 5,400 | |||
| To Net profit transferred to Capital a/cs | |||||
| -Sad’s Capital a/c (2/3) | 1,000 | ||||
| -Happy’s Capital a/c (1/3) | 500 | 1,500 | |||
| 6,900 | 6,900 | ||||
Case(b) : Profit before interest Rs.4,500
| Profit and Loss Account A/c |
|||||
| Particulars |
Amount | Particulars |
Amount | ||
| To Interest on the loan | By Profit before interest | 4,500 | |||
| Sad (50,000*6%) | 3,000 | ||||
| -Happy (50,000*6%) | 2,400 | 5,400 | |||
| By Loss transferred to: | |||||
| -Sad’s Capital a/c (2/3) | 600 | ||||
| -Happy’s Capital a/c(1/3) | 300 | 900 | |||
| 5,400 | 5,400 | ||||
Case(c) : Profit before interest Rs.600
| Profit and Loss Account A/c |
|||||
| Particulars |
Amount | Particulars |
Amount | ||
| To loss before interest | 600 | ||||
| To Interest on loan- | 3,000 | ||||
| Sad (50,000*6%) | |||||
| -Happy (50,000*6%) | 2,400 | 5,400 | |||
| By Loss transferred to: | |||||
| -Sad’s Capital a/c (2/3) | 4,000 | ||||
| -Happy’s Capital a/c(1/3) | 2,000 | 6,000 | |||
| 6,000 | 6,000 | ||||
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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
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