Question 36 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 36 Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 36 Chapter 2 – Unimax Class 12 Part 1

36. A, B and C are three partners sharing profits and losses in ratio 2 : 2: 1. Their respective capitals as on 1st Aril, 2020 were Rs. 200000, Rs. 100000 and Rs. 50000.
A and B made temporary loans to the firm as follows :
A – Rs. 40000 advanced on July 1st 2020 and repaid on 31st December, 2020.
B – Rs. 80000 advanced on 1st November, 2020 and repaid on 31st January, 2021.
Interest on capital @ 5% per annum is to be provided to partners. Profit for year ended 31st March, 2021 was Rs. 30000 (Before providing for any interest).
You have to allocate the profit among partners.

The solution of Question 36 Chapter 2 – Unimax Class 12 Part 1:

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

Particulars   Rs. Particulars Rs.
To Interest on capital     By Net Profit 30000
– A 10000      
– B 5000      
– C 2500 17500    
To Interest on advance        
– A 1200      
– B 1200 2400    
To Profit transferred to Capital A/c        
– A 4040      
– B 4040      
-C 2020 10100    
    25432   25432

Working Notes :
A’s interest on advance = Rs. 40000 x @ 6% p.a. for 6 months
                                          = Rs. 1200
B’s interest on advance = Rs. 80000 x @ 6% p.a. for 3 months
                                        = Rs. 1200

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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