Question 45 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 45 Chapter 2 of +2- Part-

Question 45 Chapter 2 of +2-Part-1

45. (Profit and loss appropriation a/c) A and B are partners sharing profits in the ratio of 3:2 with capital of Rs.25,000 and Rs.15,000 respectively. Interest on capital is allowed @6% p.a. B is allowed salary of Rs.1250 per annum. During 2018, the profits of the firm prior to calculation of interest on capital but after charging B’s salary amounted to Rs.6.250. A provision of 5% of the profits is to be maintained in respect of managers’ commission. Prepare Profit and Loss Appropriation Account.

 

The solution of Question 45 Chapter 2 of +2 Part-1: – 

 

Profit and Loss Account A/c
Particulars
Amount Particulars
Amount
To Interest on capital – A 1,500   By net profit (6250+1250)   7,500
-B 900 2,100      
To B’s Salary   1,250      
To Manager’s Commission (5% on 7500)   375      
           
To Net profit transferred to Capital a/cs          
– A 2,085        
8211; B
1,390 3,475      
    7,500     7,500

 

 

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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

 

 

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2 Book 1 min - Question 45 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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