Question 51 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 51 Chapter 2 of +2- Part-

Question 51 Chapter 2 of +2-Part-1

51. (P/L appropriation a/c, Partners capital & current accounts) A and B are partners sharing profits and losses equally. On 1.4.2017 the balance of their capital accounts were A- Rs50,000; B Rs.40,000. On that date, the balances of their current accounts were; A- Rs. 10,000 (Cr.) and B Rs.3,000 (Dr.) Interest @5% p.a. is to be allowed on the balances of capital accounts as on 1.4.2017. B is to get annual salary of Rs.3,000 which had not been withdrawn. Drawings of A and B during the year were Rs.1,000 and Rs.2,000 respectively. The profit of the year ended 31.3.2018 before charging interest on capital but after charging B’s salary was Rs.70,000. It is decided to transfer 10% of divisible profit to a Reserve account.
Prepare profit and loss appropriation account for the year ended 31.3.2018 and show the capital and current accounts of partners for the year.

The solution of Question 51 Chapter 2 of +2 Part-1: – 

 

Profit and Loss Account A/c
Particulars
Amount Particulars
Amount
To Interest on capital – A 2,500   By net profit   70,000
-B 2,000 4,500 By partners salary written back   3,000
To Salaries – B   3,000      
To Reserve a/c – 10% of (73,000-7,500)   6,550      
           
To Net profit transferred to Capital a/c          
-A 29,475        
-B 29,475        
    73,000     73,000

 

Profit and Loss Account A/c  
Particulars
A B Particulars
A B
To balance b/d   By Balance B/d   50,000 40,000
To Balance c/d   50,000 40,000        
    50,000 40,000     50,000 40,000

 

Profit and Loss Account A/c  
Particulars
A B Particulars
A B
To balance b/d   3,000 By Balance B/d   10,000
To Drawings A/c   1,000 2,000 By Interest on Capital A/c   2,500 2,000
        By salary   3,000
        By net profit   29,475 29,475
To Balance c/d   40,975 29,475        
    41,975 34,475     41,975 34,475

Thanks, Please Like and share with your friends  

Comment if you have any questions.

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 - Question 51 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Leave a Reply