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 Interest on capital is agreed at 6% p.a. Ramesh is to be allowed an annual salary of Rs.4,800 which has not been withdrawn.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 | |
Thanks, Please Like and share with your friends
Comment if you have any questions.
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
