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

Question 47 Chapter 2 of +2-Part-1

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

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

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

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

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

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

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

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

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

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