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Question 52 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-52 - CH-2 - Usha +2 Book 2018 - Solution

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Question 52 Chapter 2 of +2-Part-1

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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
AmountParticulars
Amount
To Interest on capital Precious3,600 By net profit
Rs.1,11,000-Rs300 (Interest on loan)
 1,10,700
-Noble3,000 By Interest on drawings – Precious360 
-Perfect1,8008,400-Noble360 
To Salaries – Precious2,400 -Perfect3601,080
-Noble3,6006,000   
To Net profit transferred to Capital a/cs     
First, Rs.70,000     
-Precious- 4/740,000    
-Noble-2/720,000    
-Perfect -1/710,00070,000   
Next, Rs.27,380 (97,380-70,000)     
-Precious- 1/39,127    
-Noble-1/39,127    
-Perfect -1/39,12627,380   
  1,11,780  1,11,780

 

Partners’ Capital A/c
Particulars
PreciousNoblePerfectParticulars
PreciousNoblePerfect
     By Balance B/d 60,00050,00030,000
To Balance c/d  60,00050,00030,000     
  60,00050,00030,000  60,00050,00030,000

 

Partners’ Current A/cs
Particulars
PreciousNoblePerfectParticulars
PreciousNoblePerfect
To Drawings A/c 16,00016,00016,000By Interest on Capital A/c 3,6003,0001,800
To interest on Drawings A/c 360360360By salary 2,4003,600
     By net profit 49,12729,12719,126
To Balance c/d  38,76719,3674,566     
  55,12735,72720,926  55,12735,72720,926

Working Note: –

1. Calculation of Interest on Drawings of each partner :

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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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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

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+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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