Question 42 Chapter 2 of Class 12 Part - 1 VK Publication

Question 42 Chapter 2 of Class 12 Part – 1

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The solution of Question 42 Chapter 2 of Class 12 Part – 1: –

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

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

42. Prerna, Kashish and Sanchi are partners sharing profits in the ratio of their capitals which stood at Rs. 1,00,000 each withdrew Rs. 15,000, Rs. 10,000 and Rs. 11,000 respectively. It was however agreed amongst the partners that any drawings in excess of Rs. 10,000 shall be subject to an interest at 10% pa. It was also agreed that interest on capital is to be provided at 6%. The profit for the year before making any adjustments as given above were Rs. 48,000. The credit balance of the partners’ current accounts were Rs. 10,000 each. Draw up necessary ledger accounts for the above.

The solution of Question 42 Chapter 2 of Class 12 Part – 1: –

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		48,000
Prerna	6,000		By Interest on Drawings A/c
Kashish	6,000		Prerna	250
Sanchi	6,000	18,000	Sanchi	50	300
To Profit Transferred To Capital A/C’s
Prerna	10,100
Kashish	10,100
Sanchi	10,100	30,300
		48,300			48,300

Partner’s Capital Account

Particulars	Prerna Rs.	Kashish Rs.	Sanchi Rs.	Particulars	Prerna Rs.	Kashis Rs.	Sanchi Rs.
To Drawings A/C	15,000	10,000	11,000	By Balance b/d	10,000	10,000	10,000
To Interest on Drawings A/C	250	–	50	By Interest On Capital	6,000	6,000	6,000
To Balance c/d	10,850	16,100	15,050	By P & L App. A/C ( Profit)	10,100	10,100	10,100
	26,100	26,100	26,100		26,100	26,100	26,100

Partner’s Capital Account

Particulars	Prerna Rs.	Kashish Rs.	Sanchi Rs.	Particulars	Prerna Rs.	Kashis Rs.	Sanchi Rs.
To Balance c/d	1,00,000	1,00,000	1,00,000	By Balance b/d	1,00,000	1,00,000	1,00,000
	1,00,000	1,00,000	1,00,000		1,00,000	1,00,000	1,00,000