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Question 41 Chapter 2 of +2-Part-1
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41. (Fixed and Fluctuating Capital a/c’s) On 1st January,2017, A and B entered in a partnership and contributed Rs.40,000 and Rs.30,000 respectively. They share profits and losses in the ratio of 3:2. B is to be allowed a salary of Rs.8,000 per year. Interest on capitals is to be allowed at 5% p.a. and interest is to be charged on drawings. During the year A withdrew Rs.6,000 and B Rs. 12,000 on which interest in case of A being Rs.140 and B Rs.100. Profit in 2017 before the above noted adjustments was Rs.21,160. Show the distribution of profits between the partners and prepare capital accounts when:
(a) Capitals are fluctuating.
(b) Capitals are fixed.
The solution of Question 41 Chapter 2 of +2 Part-1: –
| Profit and Loss App. A/c | |||||
| Particulars | Amount | Particulars | Amount | ||
| To Interest on Capital : | By Profit b/d | 21,160 | |||
| – A | 2,000 | By interest on drawings: | |||
| -B | 1,500 | 3,500 | -A | 140 | |
| To B’s Salary | 8,000 | -B | 100 | 240 | |
| To Net profit transferred to Capital a/cs | |||||
| -A (3/5) | 5,940 | ||||
| -B (2/5) | 3,960 | 9,900 | |||
| 21,400 | 21,400 | ||||
(a)If capitals are fluctuating :
| Partners’ Capital Account | |||||||
| Particulars | A | B | Particulars | A | B | ||
| To Drawings A/c | 6,000 | 12,000 | By Balance b/d | 40,000 | 30,000 | ||
| To Interest on Drawings A/c | 140 | 100 | By Interest on Capital A/c | 2,000 | 1,500 | ||
| By Salary | — | 8,000 | |||||
| By P&L Appropriation A/c | 5,940 | 3,960 | |||||
| To Balance c/d | 41,800 | 31,360 | |||||
| 47,940 | 43,460 | 47,940 | 43,460 | ||||
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| Partners’ Capital Accounts | |||||||
| Particulars | A | B | Particulars | A | B | ||
| By Balance B/d | 40,000 | 30,000 | |||||
| To Balance c/d | 40,000 | 30,000 | |||||
| 40,000 | 30,000 | 40,000 | 30,000 | ||||
| Partners’ Current Accounts | |||||||
| Particulars | A | B | Particulars | A | B | ||
| To Drawings A/c | 6,000 | 12,000 | By Interest on Capital A/c | 2,000 | 1,500 | ||
| To Interest on Drawings A/c | 140 | 100 | By Salary | — | 8,000 | ||
| By P&L Appropriation A/c | 5,940 | 3,960 | |||||
| To Balance c/d | 1,800 | 1,360 | |||||
| 7,940 | 13,460 | 7,940 | 13,460 | ||||
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
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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)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
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1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
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