Question 45 Chapter 2 – Unimax Class 12 Part 1
45. Ketak, Varun and Mohit are in partnership sharing profits in a ratio 5 : 3 : 2. Their Capital as on 1st October 2020 was Rs. 80000, Rs. 50000 and Rs. 30000 respectively. Their current account balances as of 1st October 2020 were Ketak = Rs. 8000 (Cr.); Varun = Rs. 6000 (Dr.) and Mohit Rs. 12000 (Cr.).
For the half year ended 31st March 2021, their drawings were :
Ketak = Rs. 1000 in the beginning of each month.
Varun = Rs. 600 at the end of each month.
Mohit = Rs. 800 in the middle of each month.
Their partnership deed provides that
(i) Interest on Capital @ 5% per annum is allowed.
(ii) Interest on Drawing @ 6% per annum is charged.
(iii) Interest on Current accounts @ 4% per annum is allowed or charged.
(iv) Mohit is entitled to annual Salary of Rs. 6000.
(v) Ketak is entitled to a Salary of Rs. 600 per month.
(vi) Ketak is entitled to a commission of 5% of the net profit of the firm after adjusting above given clauses.
(vii) Varun is entitled to a commission of 10% of net profit of firm after charging such commission such commission and all other clauses.
During half year ended 31st March, 2021, Profit of firm after charging Salaries but before providing interest and commission was Rs. 15058.
You are required to make :
Profit and Loss Appropriation Account for the half year ended 31st March, 2021.
The solution of Question 45 Chapter 2 – Unimax Class 12 Part 1:
Profit & Loss of Appropriation A/c For the year ended March 31, 2021
| Particulars | Rs. | Particulars | Rs. | ||
| To Salaries A/c | By Net Profit | 15,058 | |||
| Mohit | 6,000 | Add: Salary to Mohit | 6,000 | ||
| Ketak | 7,200 | 13,200 | Salary to Ketak | 7,200 | 28,258 |
| To Interest on Capital | By Interest on Drawings | ||||
| Ketak | 2000 | Ketak | 105 | ||
| Varun | 1250 | Varun | 45 | ||
| Mohit | 750 | 4,000 | Mohit | 72 | 222 |
| To Interest on Current A/c | By Interest on Current A/cs Varun |
120 | |||
| Ketak | 160 | ||||
| Mohit | 240 | 400 | |||
| To Ketak’s Capital-(Commission) (11000 x 5/100) |
550 | ||||
| To Varun’s Capital-(Commission) (10450 x 10/110) |
950 | ||||
| To Profit transferred to Capital A/cs | |||||
| Ketak | 4750 | ||||
| Varun | 2850 | ||||
| Mohit | 1900 | 9500 | |||
| 28,600 | 28,600 | ||||
What is Partnership – Meaning and Its 4 Types
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book-keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common-Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication