Question 41 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 41Chapter 2 - Unimax Class 12 Part 1 - 2021

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(1) Calculation of further capital to be introduced or withdrawn by partners on March 31, 2006.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

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)

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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