Question 36 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 36 Chapter 2 of +2- Part-

Question 36 Chapter 2 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

36. (Profit & Loss App. A/c / Interest on Loan) A, B and C are partners in 6:3:1 ratio. They earned profit Rs.96,000 before providing for interest on partners loan. A has given a loan of Rs.55,000 to the firm at 10% p.a. on 1-4-2018, B has also given loan RS.20,000 on 1-1-19 a 10% p.a. It was decided to transfer 20% of profits to general reserve before making any appropriations.
C’s Salaries is fixed at Rs.12,000 p.a. B gets salaries Rs.2,000 p.m. for the first five months only.Profits Rs.20,000 are shared in the 6:3:1 and excess over Rs.20,000 is shared equally.
Prepare Profit and Loss Appropriation account for the year ended 31-3-19.

The solution of Question 36 Chapter 2 of +2 Part-1: – 

Profit and Loss Account A/c
Particulars
Amount Particulars
Amount
To General Reserve (20% on 90,000)   18,000 By Profit b/d
(Rs.96,000-Interest on loan A Rs.5,500 and B Rs.500 for months)
 

90,000

To C’s salary   12,000      
To B’s salary (2000*5)   10,000      
To Net profit transferred to Capital a/cs          
20,000 in 6:3:1 and 30,000 equally:
         
-A (12,000+10,000) 22,000        
-B (6,000+10,000) 16,000        
-C (2,000+10,000) 12,000 50,000      
    90,000     90,000

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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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 36 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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