Question 50 Chapter 2 of Class 12 Part - 1 VK Publication

Question 50 Chapter 2 of Class 12 Part – 1

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The solution of Question 50 Chapter 2 of Class 12 Part – 1: –

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

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

50. On 1st April, 2017 Sen and Suri, entered into partnership for supplying air purifiers to offices located in their city. They contributed capitals of Rs. 1,00,000 and Rs. 62,500 respectively and agreed to share the profits in the ratio of 3:2. The partnership dee provided that interest on capital shall be allowed at 9% per annum. During the year, th firm earned a profit of Rs. 9,750.
Showing your calculations clearly, prepare ‘Profit and Loss Appropriation Account of Sen and Suri for the year ended 31st March, 2018

The solution of Question 50 Chapter 2 of Class 12 Part – 1: –

In the book of Sen and Suri

Profit and Loss Appreciation Account

(For the year ended 31st March, 2018)

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Particulars		Amount	Particulars	Amount
To Interest on Capital A/c:			By Profit for the year	9,750
Sen’s Capital A/c ( 9,750 x 8/13)	6,000
Suri’s Capital A/c ( 9,750 x 5/13)	3,750	9,750
		9,750		9,750

Working Notes:

Calculation of Interest on Capital:	Rs.
Interest on Sen’s Capital	9,000
Interest on Suri’s Capital	5,625
Total	14,625

The available profiy is Rs. 9,750 since the profit is less than interest , the available profit will be distributed in the ratio of interest ,i.e., 9,000:5,625 or 8:5.

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