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

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

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: –

Day - 47 | Questions of Partnership - I | Accounts class 12 | PSEB | Sarbjit Singh |

 Profit and Loss Account A/c Particulars Amount Particulars Amount To Interest on capital Precious 3,600 By net profitRs.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.

Comment if you have any questions.

End of Solution

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Question 62 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum

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)

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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