# Question 44 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-44 - CH-2 - Usha +2 Book 2018 - Solution

Question 44 Chapter 2 of +2-Part-1

44. (Profit and loss appropriation a/c) Ramesh and Suresh started partnership on 1st April 2018 with a capital of Rs.30,000 and Rs.20,000 respectively. Suresh paid in further Rs.6,000 on 1st October 2018 and Rs.4,000 on 15th January 2019. Interest on capital is agreed at 6% p.a. Ramesh is to be allowed an annual salary of Rs.4,800 which has not been withdrawn. The profits for the year ended 31 March 2019 prior to charging salary amounted to Rs.14,000. A 5% provision of this amount is to be made in respect of a commission to the manager. Prepare an account showing the distribution of profits.

### The solution of Question 44 Chapter 2 of +2 Part-1: –

 Profit and Loss Account A/c Particulars Amount Particulars Amount To Interest on capital – Ramesh 1,800 By Profit b/d 14,000 -Suresh 1,430 3,230 To Manager’s Commission – @5% on 14000 700 To Net profit transferred to Capital a/cs – Ramesh 5,035 – Suresh 5,035 10,070 14,000 14,000

Working Note: –

Calculation of Interest on partners’ Capital:

 Amount Ramesh on Rs.30,000 @6% for 1 year : 1,800 Suresh: On 20,000 for 1 year: 1,200 On 6,000 for 6 months: 180 On 4,000 for 2 ½ months: 50 1,430