Question 44 Chapter 2 of +2- Part-

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 Interest on capital is agreed at 6% p.a. Ramesh is to be allowed an annual salary of Rs.4,800 which has not been withdrawn.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
AmountParticulars
Amount
To Interest on capital – Ramesh1,800 By Profit b/d 14,000
-Suresh1,4303,230   
To Manager’s Commission – @5% on 14000 700   
      
      
To Net profit transferred to Capital a/cs     
– Ramesh5,035    
– Suresh5,03510,070   
  14,000  14,000

 

 

Working Note: –

Calculation of Interest on partners’ Capital:

 
 Amount
Ramesh on Rs.30,000 @6% for 1 year :
Suresh:
14,000
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

 

 

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Also, Check out the solved question of previous Chapters: –

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

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 44 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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