Question 43 Chapter 2 of Class 12 Part - 1 VK Publication

Question 43 Chapter 2 of Class 12 Part – 1

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The solution of Question 43 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

43. On 1st April, 2013 Brij and Nandan entered into partnership to construct toilet in government girls schools in the remote areas of Uttarakhand. They contributed capitals of Rs. 10,00,000 and Rs. 15,00,000 respectively. Their profit sharing ratio was 2:3 and interest allowed on capital as provided in the Partnership Deed was 12% per annum. During the year ended 31st March, 2014 the firm earned a profit of Rs. 2,00,000.
Prepare Profit and Loss Appropriation Account of Brij and Nandan for the year ended 31st March, 2014.

The solution of Question 43 Chapter 2 of Class 12 Part – 1: –

In the book of Brij and Nandan

Profit and Loss Appreciation Account

(For the year ended 31st March, 2017)

Particulars		Amount	Particulars	Amount
To Interest On Capital A/C:			By Profit and Loss A/c	2,00,000
Brij’s Capital A/c	80,000
Nandan’s Capital A/c	1,20,000	2,00,000
		2,00,000		2,00,000

Working Note:
Interest on capital of Brij = Rs. 1,20,000
Interest on capital of Nandan = Rs. 1,80,000
Proportionate Interest on Capitals
= 1,20,000/3,00,000×2,00,000 = Rs. 80,000 (Brij)
= 1,80,000/3,00,000×2,00,000= Rs. 1,20,000 (Nandan)

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