Question 47 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 47 Chapter 2 of +2- Part-

Question 47 Chapter 2 of +2-Part-1

47. (Profit and loss Appropriation a/c, Partners’ Capital a/c) Ajay and Atul are partners in a business showing profits and losses in the ratio of 3:2. Their capitals on 1st Jan, 2018 amounted to Rs.50,000 and Rs.30,000 respectively. During the year ended 31st December,2018 their profit was Rs.42,050 without taking into consideration interest on capital and drawings and a salary to Ajay Rs.12,000 p.a. Interest on capital is to be allowed at 8% p.a. and charged on drawings at an average rate of 5% p.a. The drawings on Ajay and Atul during the year were Rs.5,000 and Rs.2,000 respectively and interest on them worked out to be Rs250 and Rs.100 respectively.
Prepare the Profit and loss appropriation account and the capital accounts of the partners as on 31st Dec., 2018.

 

The solution of Question 47 Chapter 2 of +2 Part-1: – 

 

Profit and Loss Account A/c
Particulars
Amount Particulars
Amount
To Interest on capital – Ajay 4,000   By Profit b/d   42,050
-Atul 2,400 4,800 By interest on drawings:    
To Ajay’s Salary   12,000 – Ajay 250  
      – Atul 100 350
           
To Net profit transferred to Capital a/cs          
-Ajay 14,400        
-Atul 9,600 24,000      
    42,400     42,400


(a)If capitals are fluctuating :

Profit and Loss Account A/c
 
Particulars
Ajay Atul Particulars
Ajay Atul
To Drawings A/c   5,000 2,000 By Balance B/d   50,000 30,000
To Interest on Drawings A/c   250 100 By Interest on Capital A/c   4,000 2,400
To Interest on Drawings A/c   675 450 By Salary   12,000
        By P&L Adjustment A/c   14,400 9,600
               
To Balance c/d   75,150 39,900        
    80,400 42,000     80,400 42,000

 

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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2 Book 1 min - Question 47 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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