Question 52 Chapter 2 of +2-Part-1
52. (Profit and loss appropriation a/c, Partners Capital and Current a/c) On 1st January, 2017 Precious, Noble and Perfect entered into partnership with capitals of Rs.60,000, Rs.50,000 and Rs.30,000 respectively. Perfect advanced Rs.10,000 as loan to the partnership on 1st July, 2017. The partnership deed contained the following clauses:
1. Interest on capital @6% p.a.
2. Interest on drawings @6% p.a. Each drew Rs.4,000 at the end of each quarter commencing from 31st March 2017.
3. Working partners Precious and Noble to get salaries of Rs.200 and Rs.300 per month.
4. Interest on loan was given to Perfect @6% p.a.
5. Profits and losses are to be shared in the ratio of 4:2:1 up to Rs.70,000 and above Rs.70,000 equally.
Net profit of the firm for the year ended 31st December, 2017 (before any adjustments) was Rs.1,11,000.
Prepare the profit and loss Appropriation account and personal accounts of the partners assuming capital to be fixed.
The solution of Question 52 Chapter 2 of +2 Part-1: –
| Profit and Loss Account A/c |
|||||
| Particulars |
Amount | Particulars |
Amount | ||
| To Interest on capital Precious | 3,600 | By net profit Rs.1,11,000-Rs300 (Interest on loan) |
1,10,700 | ||
| -Noble | 3,000 | By Interest on drawings – Precious | 360 | ||
| -Perfect | 1,800 | 8,400 | -Noble | 360 | |
| To Salaries – Precious | 2,400 | -Perfect | 360 | 1,080 | |
| -Noble | 3,600 | 6,000 | |||
| To Net profit transferred to Capital a/cs | |||||
| First, Rs.70,000 | |||||
| -Precious- 4/7 | 40,000 | ||||
| -Noble-2/7 | 20,000 | ||||
| -Perfect -1/7 | 10,000 | 70,000 | |||
| Next, Rs.27,380 (97,380-70,000) | |||||
| -Precious- 1/3 | 9,127 | ||||
| -Noble-1/3 | 9,127 | ||||
| -Perfect -1/3 | 9,126 | 27,380 | |||
| 1,11,780 | 1,11,780 | ||||
| Partners’ Capital A/c |
|||||||||
| Particulars |
Precious | Noble | Perfect | Particulars |
Precious | Noble | Perfect | ||
| By Balance B/d | 60,000 | 50,000 | 30,000 | ||||||
| To Balance c/d | 60,000 | 50,000 | 30,000 | ||||||
| 60,000 | 50,000 | 30,000 | 60,000 | 50,000 | 30,000 | ||||
| Partners’ Current A/cs | |||||||||
| Particulars |
Precious | Noble | Perfect | Particulars |
Precious | Noble | Perfect | ||
| To Drawings A/c | 16,000 | 16,000 | 16,000 | By Interest on Capital A/c | 3,600 | 3,000 | 1,800 | ||
| To interest on Drawings A/c | 360 | 360 | 360 | By salary | 2,400 | 3,600 | – | ||
| By net profit | 49,127 | 29,127 | 19,126 | ||||||
| To Balance c/d | 38,767 | 19,367 | 4,566 | ||||||
| 55,127 | 35,727 | 20,926 | 55,127 | 35,727 | 20,926 | ||||
Working Note: –
1. Calculation of Interest on Drawings of each partner :
| On 4,000 for 9 months: | 180 |
| On 4,000 for 6 months: | 160 |
| On 4,000 for 3 months: | 60 |
| 360 |
No interest will be charged on last drawings since it is at the end of the accounting year.
2. Interest on Perfect’s loan Rs.300 should be loan Rs.300 should be credited to interest on Perfect’s Loan account.
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Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
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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)
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- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
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