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

Question 50 Chapter 2 of +2- Part-
Q-50 - CH-2 - Usha +2 Book 2018 - Solution

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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
AmountParticulars
Amount
To Interest on capital – A2,000 By net profit 20,100
-B1,500    
-C1,0004,500   
      
      
      
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)3,60015,600   
  20,100  20,100

 

Partners’ Current Account 
Particulars
AB CParticulars
ABC
To balance b/d 1,000By Balance B/d 3,000500
To Drawings A/c 8,0007,5004,000By Interest on Capital A/c 2,00015001000
     By salary 2,0001,500
     By net profit 7,2004,8003,600
To Balance c/d  4,2001,3001,100     
  12,2008,8006,100  12,2008,8006,100

 

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

 

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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