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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 - 2021

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Question 38 Chapter 2 – Unimax Class 12 Part 1

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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

ParticularsXYParticularsXY
To drawings 3000By Balance b/d3000015000
To Balance c/d6700033000By Profit3050015250
   By Salary A/c50005000
   By Int. on Capital A/c1500750
 6700036000 6700036000
   By Balance b/d6700036000

Working Notes :

Capital of the end 100000
Add Drawings3000
 103000
Less Salary10000 
Interest on Capital2250 
Capital in the beginning4500057250
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/

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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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