Question 4 Chapter 2 of Class 12 Part – 1 VK Publication

Question 4 Chapter 2 of Class 12 Part - 1 VK Publication
Question 4 Chapter 2 of Class 12 Part - 1 VK Publication

Question 4 Chapter 2 of Class 12 Part – 1

4. A and B entered into a partnership on 1st April, 2017. They contributed Rs. 1,00,000 and Rs. 2,00,000 respectively and agreed that interest on capital should be allowed at 10% p.a. A must receive a salary of Rs. 20,000 p.a. and B Rs. 30,000 p.a. The profits for the year amounted to Rs. 1,20,000 which are to be shared equally amongst the partners. Interest on drawings amounted to Rs. 3,000 and Rs. 4,500 for A and B respectively.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018:

The solution of Question 4 Chapter 2 of Class 12 Part – 1: –

Rectification of mistakes:
(i) Interest on B’s Loan is to be provided @ 6% pa. and not @ 4% p.a.
(ii) No salary is to be given to partner A for working as manager in the partnership deed
(iii) Cut Profit will be shared by partners in equal ratio.
(iv) Interest on drawings will be charged for an average period of 6 months. Revised Profit and Loss Appropriation Account is given below:

Profit and Loss Appreciation Account

For the year ended 31st March, 2018

Particulars    Amount Particulars    Amount
To Interest on Capital A/c:     By Profit and Loss A/c   1,20,000
A 10,000   By Interest on Drawings    
B 20,000 30,000 A 3,0000  
To Partner’s Salary A/c     B 4,500 7,500
A 20,000        
B 30,000 50,000      
To Profit transferred to Capital A/c’s          
A 23,750        
B 23,750 47,500      
    1,27,500     1,27,500

 

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Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

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Chapter No. 2 – Partnership Accounts – I (Introduction)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)

Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company

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Chapter No. 2 – Financial Statement Analysis

Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size

Chapter No. 4 – Ratio Analysis

Chapter No. 5 – Cash Flow Statement

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms 

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