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

Question 49 Chapter 2 of +2- Part-

Question 49 Chapter 2 of +2-Part-1

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 22,500 -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        
    1,55,175     1,55,175

 

Profit and Loss Account A/c
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To cash a/c (withdrawn) (BF)   10,000 By Balance B/d   3,00,000 2,50,000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

 

 

Profit and Loss Account A/c
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

 

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

  • Chapter No. 1 – Accounting Not for Profit Organisations
  • Chapter No. 2 – Partnership Accounts – I
  • Chapter No. 3 – Partnership Accounts – II (Introduction)
  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
  • 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 (Balance Sheet Only)
  • Chapter No. 2 – Techniques of Financial Statement Analysis
  • Chapter No. 3 – Ratio Analysis 
  • Chapter No. 4 – Cash Flow Statement

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 49 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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