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Question 5 Chapter 2 of Class 12 Part – 1 VK Publication

Question 5 Chapter 2 of Class 12 Part - 1 VK Publication
Question 5 Chapter 2 of Class 12 Part - 1 VK Publication

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Question 5 Chapter 2 of Class 12 Part – 1

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5. Karam Singh and Suleman decided to start a partnership firm to manufacture low cost paper bags from the waste paper as plastic bags were creating many environmental problems. For this, they contributed capitals of Rs. 2,00,000 and Rs. 1,00,000 respectively on 1st April, 2012. Suleman also expressed his willingness to admit Inderjeet as a partner without capital in the firm. Inderjeet is specially abled but a very creative and intelligent friend of his. Karam Singh agreed to this. The terms of partnership were as follows:
(i) Karam Singh, Suleman and Inderjeet will share profits in the ratio of 2:2:1
(ii) Interest on capital will be provided @6% p.a.
Due to shortage of capital, Karam Singh contributed Rs. 50,000 on 30th September, 2012 and Suleman contributed Rs. 20,000 on 1st January, 2013 as additional capital. The profit of the firm for the year ended 31st March, 2013 was Rs. 2,00,300.
(a) Identify any two values which the firm wants to communicate to the society.
(b) Prepare Profit and Loss Appropriation Account of the firm for the year ending 31st March, 2013.

The solution of Question 5 Chapter 2 of Class 12 Part – 1: –

(a) Values which the firm wants to communicate to the society are (any two)
 Being sensitive towards specially abled people.
 Encouraging creative people.
 Concern for environment.
 Recycling of waste products
(b)

Profit and Loss Appreciation Account

(For the year ended 31st March,2013)

Particulars 
 
AmountParticulars Amount
To Interest on Capital A/c:  By Profit and Loss A/c2,00,300
Karam singh’s capital A/c13,500   
Suleman’s Capital A/c6,30019,800  
To Profit Transferred to Capital A/c’s    
Karam singh’s capital A/c72,200   
Suleman’s Capital A/c72,250   
Suleman’s Capital A/c36,1001,80,500  
  2,00,300 2,00,300

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Working Notes:
Calculation of Interest on Capital
1. Karam Singh:
2,00,000 ×6/100 + 50,000 ×6/100 +6/12 = 12,000+1,500 = Rs. 13,500
2. Suleman:
1,00,000 ×6/100 + 20,000 ×6/100 +3/12 = 6,000+300 = Rs. 6,300

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Also, Check out the solved question of all 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)

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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)

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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

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Chapter No. 5 – Cash Flow Statement

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms 

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