Question 42 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 42Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 42 Chapter 2 – Unimax Class 12 Part 1

42. Ketak, Varun and Mohit are in partnership sharing profits and losses in ratio 5 : 3 : 2. Their Capitals as on 1st April, 2020 were Rs. 200000, 150000 and Rs. 75000 respectively. Their partnership deed provides the following :
(i) Partners are to be allowed interest on Capital 10% per annum.
(ii) Interest on Drawing is charged @ 20% per annum.
(iii) Ketak is entitled to a Salary of Rs. 1500 per month for use of his premises by firm which has already been paid in cash.
(iv) Varun is entitled to a Salary of Rs. 1000 per month.
(v) Mohit is entitled to a commission of 10% of net profit before charging such commission but after providing other above given clauses.
During the year Ketak withdrew Rs. 1000 in beginning of each month. Varun and Mohit’s drawing in year were Rs. 30000 and Rs. 40000 respectively.
The net profit of the firm for the year ended 31st March, 2021 before providing any of above clause was Rs. 175000.

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

Profit & Loss of Appropriation A/c of firm For the year ended 31st March., 2021

Particulars   Rs. Particulars   Rs.
To Interest on Capital     By Net Profit b/d   175000
– Ketak 20000   By Interest on Drawings A/c    
– Varun 15000   Ketak 1300  
– Mohit 7500 42500 Varun 3000  
To Rent (Ketak) (Rs. 1500 x 12)   18000 Mohit 4000 8300
To Salary (Varun) (Rs. 1000 x 12)   12000      
To Commission (Mohit) (110800 x 10/100)   11080      
To Profit transferred          
Ketak 49860        
Varun 29916        
Mohit 19944 99720      
    183300     183300

Partner’s Capital Accounts

Particulars Ketak Varun Mohit Particulars Ketak Varun Mohit
To Drawings 12000 30000 40000   200000 150000 75000
To Interest on Drawings 1300 3000 4000 By Interest on Capital 20000 15000 7500
To Balance c/d 256560 173916 69524 By Salaries A/c   12000  
        By Commission A/c     11080
        By Profit & Loss Appropriaton A/c 49860 29916 19944
               
  269860 2069150 113524   269860 2069150 113524
        By Balance b/d 269860 2069150 113524

Working Notes :

(1) Interest on Capitals @ 10% p.a.
Ketak : Rs. 200000 x 10/100 = Rs. 20000
Varun : Rs. 150000 x 10/100 = Rs. 15000
Mohit : Rs. 75000 x 10/100 = Rs. 7500

(2) Interest on Partner’s Drawings
Ketak : Rs. 12000 x 20/100 x 6.5/12 = Rs. 1300
Varun : Rs. 30000 x 20/100 x 6/12 = Rs. 3000
Mohit : Rs. 40000 x 20/100 x 6/12 = Rs. 4000

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

Leave a Reply

Your email address will not be published. Required fields are marked *