Question 35 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 35 Chapter 2 of +2- Part-

Question 35 Chapter 2 of +2-Part-1

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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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2 Book 1 min - Question 35 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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