# 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 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/csVarun 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)