Question 38 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 38 Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 38 Chapter 2 – Unimax Class 12 Part 1

38. X and Y are partners. As on 1st April, 2020, the capital of the firm was Rs. 45000 out of which Rs. 30000 stood to the credit of X and Rs. 15000 to the credit of Y. Profits and Losses are to be divided in ratio 2 : 1. During year ended 31st March, 2021, Y’s Drawings were Rs. 3000. Both X and Y are entitled to annual salary of Rs. 5000 each and interest on capital @ 5% per annum.
The net profit for year ending 31st March, 2021 before providing above adjustments amounted to Rs. 40000. Prepare firm’s Profit and Loss Appropriation Account.

The solution of Question 38 Chapter 2 – Unimax Class 12 Part 1:

Partner’s Capital Accounts

Particulars X Y Particulars X Y
To drawings   3000 By Balance b/d 30000 15000
To Balance c/d 67000 33000 By Profit 30500 15250
      By Salary A/c 5000 5000
      By Int. on Capital A/c 1500 750
  67000 36000   67000 36000
      By Balance b/d 67000 36000

Working Notes :

Capital of the end  100000
Add Drawings 3000
  103000
Less Salary 10000  
Interest on Capital 2250  
Capital in the beginning 45000 57250
Profit during the year   45750

(2) X’s share of profit = 45750 x2/3
                                    = Rs. 30500
Y’s share of profit = 45750 x2/3
                                   = Rs. 15250

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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