# 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)

 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

 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

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

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Also, Check out the solved question of all Chapters: –

## 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