Question 52 Chapter 2 of Class 12 Part - 1 VK Publication

Question 52 Chapter 2 of Class 12 Part – 1

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The solution of Question 52 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

52. Ram and Lakhan entered into a partnership on 1st July, 2017 by contributing Rs. 20,000 and Rs . 30,000 respectively, on the same day Ram also brought into the business machinery costing Rs. 10,000. As per partnership deed interest is chargeable on capitals and drawings @10% p.a. They will share profits and losses in equal ratio and entitled to withdraw Rs.6,000 p.a. each in equal monthly instalments during the year. But they draw Rs. 4,500 each as the financial year ended 31st March. On this date their Profit and Loss Account shows a profit of Rs. 10,000 (before taking into account the provisions of deed). Show the P&L Appropriation Account and Capital Accounts of the partners for the year ending on 31st March, 2018.

The solution of Question 52 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

(For the year ended 31st March, 2018)

Particulars		Amount	Particulars		Amount
To Interest on Capital A/c:			By Profit and Loss A/c		10,000
Ram	2,250		By Interest on Drawings
Lakhan	2,250	4,500	Ram	188
To Profit Transferred To Capital A/C’s			Lakhan	187	375
Ram	2,938
Lakhan	2,937	5,875
		10,375			10,375

Partner’s Capital Account

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Particulars	Ram Rs.	Lakhan Rs.	Particulars	Ram Rs.	Lakhan Rs.
To Drawings Account	4,500	4,500	By Balance b/d	30,000	30,000
To Interest on Drawings	188	187	By Interest on Capital	2,250	2,250
To Balance c/d	30,500	30,500	By P & L App. A/c	2,938	2,937
	35,188	35,187		35,188	35,187

Working Notes:
1. Ram’s Capital = 20,000+ 10,000 ( Machinery ) = Rs. 30,000.
2. Interest on Drawings is calculated is calculated by product method for 9 months

Partner’s Capital Account

Date	Rs.	Periods (months)	Product
1st July	500	9	4,500
1st August	500	8	4,000
1st September	500	7	3,500
1st October	500	6	3,000
1st November	500	5	2,500
1st December	500	4	2,000
1st January	500	3	1,500
1st February	500	2	1,000
1st March	500	1	500
Total of Products			22,500