Question 38 Chapter 3 – 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 3 – 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 :
| (1)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
What is Partnership – Meaning and Its 4 Types
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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