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Question 5 Chapter 2 – Unimax Class 12 Part 1
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5. On 1st January, 2021 A and B entered into partnership contributing Rs. 60000 and Rs. 40000 respectively. They agreed to share profits and losses in ratio of 3:2. B is allowed annual salary of Rs. 6000. Interest on their respective Capitals are Rs. 6000 and Rs. 4000. During the year, A withdrew Rs. 5000 and B Rs. 10000 as Drawings. Interest on drawings of A and B is Rs. 150 and Rs. 300 respectively. Profit for year ended December 31, 2021 before above mentioned adjustments was Rs. 50000. Show distribution of profit by preparing Profit and Loss Appropriation Account of the firm.
The solution of Question 5 Chapter 2 – Unimax Class 12 Part 1:
Profit & Loss Appropriation Account For the year ended Dec. 31, 2006.
| Particulars | Rs. | Particulars | Rs. | ||
| To B’s Capital A/c (Salary) | 6000 | By Net Profit | 50000 | ||
| To Interest on Capital A/c | By Interest on drawings : | ||||
| – A | 6000 | – A | 150 | ||
| – B | 4000 | 10000 | – B | 300 | 450 |
| To Profit transferred to Capital A/c | |||||
| – P | 20670 | ||||
| – Q | 13780 | 34,450 | |||
| 50,450 | 50,450 |
https://tutorstips.com/not-for-profit-organisations/
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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