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

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


Question 52 Chapter 2 of Class 12 Part – 1


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)

To Interest on Capital A/c:  By Profit and Loss A/c 10,000
Ram2,250 By Interest on Drawings  
To Profit Transferred To Capital A/C’s  Lakhan187375
  10,375  10,375

Partner’s Capital Account



 Ram Rs. 

Lakhan Rs.Particulars Ram Rs. Lakhan Rs.
To Drawings Account4,5004,500By Balance b/d30,00030,000
To Interest on Drawings188187By Interest on Capital2,2502,250
To Balance c/d30,50030,500By P & L App. A/c2,9382,937
 35,18835,187 35,18835,187

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 July50094,500
1st August50084,000
1st September50073,500
1st October50063,000
1st November50052,500
1st December50042,000
1st January50031,500
1st February50021,000
1st March5001500
Total of Products  22,500

Interest on Drawings = Total of Products ×rate/100×1/12 = 22,500 ×10/100×1/12 = Rs. 187.5

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Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

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)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company

Chapter No. 2 – Financial Statement Analysis


Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size

Chapter No. 4 – Ratio Analysis

Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms 



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