Advertisement

Question 45 Chapter 2 of Class 12 Part – 1 VK Publication

Question 45 Chapter 2 of Class 12 Part - 1 VK Publication
Question 45 Chapter 2 of Class 12 Part - 1 VK Publication

Advertisement

Question 45 Chapter 2 of Class 12 Part – 1

Advertisement

45. Y and Z are partners sharing profits and losses in the ratio of 2:1 with capitals Rs. 5,00,000 and Rs. 2,50,000 respectively. Show distribution of profits in each of the following cases:
(i) Partnership deed does not provide for interest on capital and profit is Rs. 37,500
(ii) Partnership deed provides for interest on capital at 5% pa. and losses for the year are Rs. 37,500.
(iii) Partnership deed provides for interest on capital at 5% p.a. and profits for the year are Rs. 39,000.
(iv) Partnership deed provides for interest on capital at 5% p.a. and profits for the year are Rs. 36,000
(v) Partnership deed provides for interest on capital at 5% p.a. even if it involves the in loss and profits for the year are Rs. 36,000.

The solution of Question 45 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

Particulars 
 
AmountParticulars 
 
Amount
To Profit Transferred to Partners’ Capital A/C:  By Profit And Loss A/C37,500
Y25,000   
Z12,50037,500  
  37,500 37,500

Since the Partnership Deed is silent with regard to interest on capital, according to Section 13 of the Partnership Act, 1932, no interest on capital will be allowed on the capitals of the Hence, it is not allowed in this case.

Case (ii)

Advertisement-X

Profit and Loss Appreciation Account

Particulars 
 
AmountParticulars 
 
 Amount
To Profit And Loss A/C (Loss):37,500By Loss Transferred to Partners’ Capital A/C  
  Y25,000 
  Z12,50037,500
 37,500  37,500

Interest on Capital Is not provided since there is a loss.

Case (iii)

Profit and Loss Appreciation Account

(For the year ended 31st March, 2018)

Particulars 
 
AmountParticulars 
 
Amount
To Interest On Capital A/C:  By Profit And Loss A/C39,000
Y25,000   
Z12,50037,500  
To Profit Transferred To Capital A/C’s    
Y1,000   
Z5001,500  
  39,000 39,000

Case (iv)

Advertisement-X

Profit and Loss Appreciation Account

Particulars 
 
AmountParticulars 
 
Amount
To Interest On Capital A/C:  By Profit And Loss A/C36,000
Y24,000   
Z12,00036,000  
  36,000 36,000

The available profit is Rs, 36,000 whereas the interest on capital is Rs. 37,500 ( 25,000+ 12,500). Since the profit is less than the interest , the available profit will be distributed in capita; ratio or ratio of interest on capital ( both being the same)

Case (v)

Profit and Loss Appreciation Account

Particulars 
 
AmountParticulars 
 
 Amount
To Interest On Capital A/C:  By Profit And Loss A/C 36,000
Y25,000 By Loss Transferred to Partners’ Capital A/C  
Z12,50037,500Y1,000 
   Z5001,500
  37,500  37,500

Thanks, Please Like and share with your friends  

Comment if you have any questions.

Advertisement-X

Advertisement-Y

Also, Check out the solved question of all 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)

Advertisement-X

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

Advertisement-X

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms 

Advertisement

Advertisement

error: Content is protected !!