Question 50 Chapter 2 of +2-Part-1
50. (Profit and loss appropriation a/c, Partners Current a/c) A, B and C are in partnership with respective fixed capitals of Rs.40,000; Rs.30,000 and Rs.20,000. B and C are entitled to annual salaries of Rs. 2,000 and Rs.1500 are respectively payable before the division of profits. Interest on capital is allowed at 5% p.a., but interest is not charged on drawings. Of the first Rs.12,000 divisible as profits in any year, A is entitled to 50%, B to 30% and c to 20%. Annual profits in excess of Rs.12,000 are divisible equally. The profits of the year ended 31st March 2018 was Rs.20,100 after debiting partners salaries but before charging interest on capital. The partner’s drawings for the year were: A Rs.8,000; B Rs.7,500 and C Rs.4,000. The balance on the partners current account on 1st April 2017 was A- Rs.3,000 credit.; B Rs.500 credit and C – Rs.1,000 debit.
Prepare the closing entries of the profit and loss appropriation account and the partners current accounts.
The solution of Question 50 Chapter 2 of +2 Part-1: –
| Profit and Loss App. A/c |
|||||
| Particulars |
Amount | Particulars |
Amount | ||
| To Interest on capital – A | 2,000 | By net profit | 20,100 | ||
| -B | 1,500 | ||||
| -C | 1,000 | 4,500 | |||
| To Net profit transferred to Capital a/cs | |||||
| -A(6,000 + 1,200) | 7,200 | ||||
| -B(3,600+1,200) | 4,800 | ||||
| -C (2,400 +1,200) | 3,600 | 15,600 | |||
| 20,100 | 20,100 | ||||
| Partners’ Current Account | |||||||||
| Particulars |
A | B | C | Particulars |
A | B | C | ||
| To balance b/d | – | – | 1,000 | By Balance B/d | 3,000 | 500 | – | ||
| To Drawings A/c | 8,000 | 7,500 | 4,000 | By Interest on Capital A/c | 2,000 | 1500 | 1000 | ||
| By salary | – | 2,000 | 1,500 | ||||||
| By net profit | 7,200 | 4,800 | 3,600 | ||||||
| To Balance c/d | 4,200 | 1,300 | 1,100 | ||||||
| 12,200 | 8,800 | 6,100 | 12,200 | 8,800 | 6,100 | ||||
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
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)
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- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
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