Question 41 Chapter 2 – Unimax Class 12 Part 1
41. Ram and Gopal are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st January, 2021 their fixed capitals were Rs. 100000 and Rs. 150000 respectively. On 31st March, 2021 they decided that their total capital (fixed) should be Rs. 300000. It was further decided that the capital (fixed) should be in their profit sharing ratio.
Accordingly they introduced or withdrew the necessary Capital. The partnership deed provided the following :
(i) Interest on Capital @ 12% per annum.
(ii) Interest on drawings @ 18% per annum.
(iii) Salary to Ram @ Rs. 2000 per month and to Gopal @ Rs. 3000 per month.
The drawings of Ram and Gopal during the year were as follows :
| Date | Ram (Rs.) | Gopal (Rs.) |
| July, 1st | 10000 | 12000 |
| September, 30th | 15000 | 12000 |
The profit earned by the firm for the year ended 31st December, 2021 was Rs. 200000. 10% of this profit was to be kept in a reserve.
You are required to prepare :
(i) Profit and Loss Appropriation Account
(ii) Capital Accounts of Ram and Gopal.
(iii) Current Accounts of Ram and Gopal.
The solution of Question 41 Chapter 2 – Unimax Class 12 Part 1:
Profit & Loss of Appropriation A/c For the year ended 31st Dec., 2021
| Particulars | Rs. | Particulars | Rs. | ||
| To Interest on Capital | By Net Profit b/d | 200000 | |||
| – Ram | 19200 | By Interest on Drawings | |||
| – Gopal | 15300 | 34500 | Ram | 1575 | |
| To Reserve (200000 x 10/100) |
20000 | Gopal | 1620 | 3195 | |
| To Salaries | |||||
| – Ram | 2400 | ||||
| – Gopal | 36000 | 60000 | |||
| To Profit transferred to current A/c | |||||
| – Ram | 53217 | ||||
| – Gopal | 35478 | 88695 | |||
| 203195 | 203195 |
Partner’s Capital Accounts
| Date | Particulars | Ram | Gopal | Date | Particulars | Ram | Gopal |
| 31-3-21 | To Bank A/c | – | 30000 | 1-1-2021 | By Balance b/d | 100000 | 150000 |
| 31-12-21 | To Balance c/d | 180000 | 120000 | 1-3-2021 | By Bank A/c | 80000 | |
| 180000 | 150000 | 180000 | 150000 | ||||
| By Balance b/d | 180000 | 150000 |
Partner’s Current Accounts
| Particulars | Moon | Star | Particulars | Moon | Star |
| To Drawings A/c | 25000 | 24000 | By Interest on Capital A/c | 19200 | 15300 |
| To Interest Drawings A/c | 1575 | 1620 | By Salaries A/c | 24000 | 36000 |
| To Balance c/d | 69842 | 61158 | By Profit & Loss App (profit) | 53217 | 35478 |
| 96417 | 86778 | 96417 | 86778 | ||
| By Balance b/d | 69842 | 61158 |
Working Notes :
(1) Calculation of further capital to be introduced or withdrawn by partners on March 31, 2006.
Capital Fixed by Partners Rs. 300000
Profit Sharing Ratio of Ram & Gopal 3 : 2
| Ram (Rs.) | Gopal (Rs.) | |
| New Capitals | 180000 | 120000 |
| (300000 x 3/5) | (300000 x 2/5) | |
| Less Existing Capitals | 100000 | 150000 |
| Further Capital to be introduced (withdrawn) | 80000 | (30000) |
(2) Calculation of Interest on Capital
Partner A
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| Amount invested | No. of Months | Product |
| 100000 | 3 | 300000 |
| 180000 | 9 | 162000 |
| 1920000 |
(3) Calculation of Interest on Drawings
Partner A
| Amount withdraw | No. of Months | Product |
| 10000 | 6 | 60000 |
| 15000 | 3 | 45000 |
| 105000 |
105000 x 18/100 x 1/12 = Rs. 1575
Partner B
| 12000 | 6 | 72000 |
| 12000 | 3 | 36000 |
| 108000 |
108000 x 18/100 x 1/12 = Rs. 1620
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)
- 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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication