Question 46 Chapter 2 of +2-Part-1
46. (Profit and loss Appropriation a/c, Fixed and Fluctuating Capital a/c’s) On 1st April, 2016 A and B entered in a partnership contributing Rs.24,000 and Rs.10,000 respectively. According to the deed, the interest on capital is to be allowed and on drawings to be charged @15% p.a. A and B shall receive a monthly salary of Rs.2,000 each. A is entitled to 2/5 of profits. During the year, the following transactions took place:
(a) On 1st October, 2016 A withdrew (on permanent basis)Rs.8,000 from his capital and B introduced Rs.4,000 as additional capital.
(b) The drawings of A and B were Rs.12,000 each drawn at different intervals of time and the interest corresponding to these drawings were Rs. 675 and Rs.450 respectively.
(c) The profit for the year before any adjustment is made was Rs.60,000.
Prepare the profit and loss appropriation account and the necessary accounts assuming that:
(i) The capitals are fluctuating.
(ii) The capitals are fixed.
The solution of Question 46 Chapter 2 of +2 Part-1: –
| Profit and Loss App. A/c |
|||||
| Particulars |
Amount | Particulars |
Amount | ||
| To Interest on capital – A | 3,000 | By Profit b/d | 60,000 | ||
| -B | 1,800 | 4,800 | By interest on drawings: | ||
| To salary- A | 24,000 | -A | 675 | ||
| -B | 24,000 | 48,000 | -B | 450 | 1,125 |
| To Net profit transferred to Capital a/cs | |||||
| -A (3/5) | 4,995 | ||||
| -B (2/5) | 3,330 | 8,325 | |||
| 61,125 | 61,125 | ||||
(a)If capitals are fluctuating :
| Partners’ Current A/c | |||||||
| Particulars |
A | B | Particulars |
A | B | ||
| To Cash A/c | 8,000 | – | By Balance B/d | 24,000 | 10,000 | ||
| To Drawings A/c | 12000 | 12000 | By Cash | – | 4,000 | ||
| To Interest on Drawings A/c | 675 | 450 | By Interest on Capital A/c | 3,000 | 1,800 | ||
| By Salary | 24,000 | 24,000 | |||||
| By P&L Appropriation A/c | 4,995 | 3,330 | |||||
| To Balance c/d | 35,320 | 30,680 | |||||
| 55,995 | 43,130 |
55,995 | 43,130 | ||||
(b)If capitals are fixed :
| Partners’ Capital A/c | |||||||
| Particulars |
A | B | Particulars |
A | B | ||
| To Cash A/c | 8,000 | – | By Balance B/d | 24,000 | 10,000 | ||
| By Cash | – | 4,000 | |||||
| To Balance c/d | 16,000 | 14,000 | |||||
| 24,000 | 14,000 |
24,000 | 14,000 | ||||
| Partners’ Current A/c | |||||||
| Particulars |
A | B | Particulars |
A | B | ||
| To Drawings A/c | 12,000 | 12,000 | By Interest on Capital A/c | 3,000 | 1,800 | ||
| To Interest on Drawings A/c | 675 | 450 | By Salary | 24,000 | 24,000 | ||
| By P&L Appropriation A/c | 4,995 | 3,330 | |||||
| To Balance c/d | 19,320 | 16,680 | |||||
| 31,995 | 29,130 |
31,995 | 29,130 | ||||
Working Note: –
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Calculation of Interest on Partners’ Capital:
| Amount |
|
| A | |
| On 24,000 for ½ year: | 1,800 |
| On 16,000 for ½ year: | 1,200 |
| 3,000 | |
| Amount |
|
| B | |
| On 10,000 for ½ year: | 750 |
| On 14,000 for ½ year: | 1,050 |
| 1,800 |
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
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)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
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- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
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