Question 50 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 50 Chapter 2 of +2- Part-

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 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

 

Profit and Loss Account A/c    
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
  • 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

 

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2 Book 1 min - Question 50 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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