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Question 47 Chapter 2 of +2-Part-1
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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 | 6400 | 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 :
Partners’ Capital 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 | ||
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
- Chapter No. 1 – Accounting Not for Profit Organisations
- 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)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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