Question 45 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 45 Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 45 Chapter 2 – Unimax Class 12 Part 1

45. Ketak, Varun and Mohit are in partnership sharing profits in ratio 5 : 3 : 2. Their Capitals as on 1st October, 2020 were Rs. 80000, Rs. 50000 and Rs. 30000 respectively. Their current account balances as on 1st October, 2020 were Ketak = Rs. 8000 (Cr.) ; Varun = Rs. 6000 (Dr.) and Mohit Rs. 12000 (Cr.).
For 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 Interest on Capital     By Net Profit   15.58
Ketak 2000   By Interest on Drawings A/c    
Varun 1250   Ketak 105  
Mohit 750 4000 Varun 45  
To Interest on Current A/c     Mohit 72 222
Ketak 160   By Interest on Current A/cs
Varun
  120
Mohit 240 400      
To Ketak’s Capital A/c (Commission)
(11000 x 5/100)
  550      
To Varun’s Capital A/c (Commission)
(10450 x 10/110)
  950      
To Profit transferred to Capital A/cs          
Ketak 4750        
Varun 2850        
Mohit 1900 9500      
    15400     15400

What is Partnership – Meaning and its Types

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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

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