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Question 50 Chapter 2 of +2-Part-1
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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 Account 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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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 (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)
- 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
- 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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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