Question 49 Chapter 2 of +2 Part-1 - USHA Publication 12 Class Part

Question 49 Chapter 2 of +2-Part-1

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The solution of Question 49 Chapter 2 of +2 Part-1: –

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

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

49. (P/L appropriation a/c, Partners capital & current accounts)X and Y were partners in firm sharing profits in the ratio of 3:2.On 1.4.2016 their fixed capitals were Rs.3,00,000 and Rs.2,50,000 respectively. On 1.10.2016 they decided that their total capital (fixed) should be Rs.6,00,000 in their profit sharing ratio. Accordingly, they introduced extra capital or withdrew excess capital. The partnership deed provided for the following:
(a) Interest on capital to be allowed @12% p.a.
(b) Interest on drawings @18% p.a.
(c) A monthly salary of Rs.2,000 to X and a monthly salary of Rs.1,500 to Y. The drawings of X and Y during the year as follows:

Year (2016-17)	X	Y
Sep-30	20,000	15,000
Dec-31	20,000	25,000

During the year ended 31.3.2017, the firm earned a net profit of Rs.1,50,000. 10% of this profit was to be transferred to the general reserve. You are required to prepare:
1. Profit and Loss appropriation account
2. Partners’ Capital accounts
3. Partners current accounts.

The solution of Question 49 Chapter 2 of +2 Part-1: –

Profit and Loss Account A/c
Particulars		Amount	Particulars		Amount
To General Reserve		15,000	By net profit		1,50,000
To Interest on capital (WN1) – X	39,600		By Interest on drawings (WN2) –
-Y	29,400	69000	-X	2,700
To Salaries – X(2,000*12)	24,000		-Y	2,475	5,175
-Y (1,500*12)	18,000	42,000

To Net profit transferred to Capital a/cs
-X(3/5)	17,505
-Y(2/5)	11,670	29,175
		1,55,175			1,55,175

Partners’ Capital Account
Particulars	X	Y	Particulars	X	Y
To cash a/c (withdrawn) (BF)	–	10,000	By Balance B/d	3,00,000	2,50,000
			By cash a/c (introduced) (BF)	60,000	–

To Balance c/d	3,60,000	2,40,000
	3,60,000	2,50,000		3,60,000	2,50,000

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Partners’ Current Account
Particulars	X	Y	Particulars	X	Y
To Drawings A/c	40,000	40,000	By Interest on Capital A/c	39,600	29,400
To Interest on Drawings A/c	2,700	2,475	By Salary	24,000	18,000
			By P&L Appropriation A/c	17,505	11,670

To Balance c/d	38,405	16,595
	81,105	59,070		81,105	59,070

Working Note: –

1. Calculation of Interest on partners’ Capital @12%:

X:
On 3,00,000 for ½ year:	18,000
On 3,60,000 for ½ year:	21,600
	39,600

Y:
On 2,50,000 for ½ year:	15,000
On 2,40,000 for ½ year:	14,400
	29,400

2. Calculation of Interest on partners’ Drawings @18%:

X:
On 20,000 for ½ year (Oct-march):	1,800
On 20,000 for ¼ year (Jan – March):	900
	2,700

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Y:
On 15,000 for ½ year (Oct-March):	1350
On 25,000 for ¼ year (Jan- March):	1,125
	2,475

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

The solution of Question 49 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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