Advertisement

Question 53 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 53 Chapter 2 of +2- Part-
Q-53 - CH-2 - Usha +2 Book 2018 - Solution

Advertisement

Question 53 Chapter 2 of +2-Part-1

Advertisement

53. (Profit and loss appropriation a/c) Ted, Phil and Gordon are in partnership sharing profits two-fifths, two fifths and one-fifth and throughout the half-year ended 31st December 2017 their capital accounts have remained unchanged at Rs.60,000, Rs.40,000 and Rs.30,000 respectively.
Their current account balances on 1st July 2017 were:

  
Phil8,550 (Dr.)
Gordon6,550 (Dr.)
Ted12,000 (Cr.)

During 2017 Ted withdrew Rs.200 at the beginning of each month, Gordon withdrew Rs.400 at the end of each month while Phil withdrew Rs.1,800 during the period of six months.

Their partnership deed provides that:
1. Partners are allowed interest on capital @5% p.a.
2. Partners are allowed or charged interest on current account balance @4% p.a.
3. Interest on drawings @6% p.a.
4. Gordon is entitled to a salary of Rs.500 per month.
5. Ted is entitled to a commission of 5% of the profits of the firm after charging clauses 1 to 4.
6. Phil is entitled to a commission of 5% of the profits of the firm after charging clauses 1 to 5 and his own commission.
During the half-year ended 2017, the net profit of the firm was Rs.2,07,000 after charging Gordon’s Salary which had been debited to wages and salaries account.
You are required to prepare the profit and loss appropriation account of the firm only.

The solution of Question 53 Chapter 2 of +2 Part-1: – 

Profit and Loss App. A/c
Particulars
AmountParticulars
Amount
To Interest on capital – Ted1,500 By net profit2,07,000 
-Phil1,000 Add: Gordon’s Salary3,0002,10,000
-Gordon7503250By Interest on drawings (WN1)  
To Interest on current a/c  – Ted21 
-Ted (12,000*4%*6/12) 240-Phil27 
To Gordon Salary 3,000-Gordon3078
To Commission to Ted (WN2) 10,195By interest on current accounts:  
To Commission to Phil (WN2) 9,224-Phil (8,550*4%*6/12) 171
To Profit:  -Gordon (6,550*4%*6/12) 131
-Ted73,788    
– Phil73,788    
-Gordon 36,8951,84,471   
  2,10,380  2,10,380

Working Note: –

1. Calculation of Interest on Drawings :

Advertisement-X

Ted : 200 X 6 =1200 X 3 ½ X 6% X 1/1221
Gordon : 400 X 6 =2400 X 2 ½ X 6% X 1/1230
Phil: 1800 X 6% X 3/1227

2. Commission:

Ted’s Commission=5% of profits after charging clauses (A) to (D)
 =5% of ( 2,10,380-3,000-3,250-240)
 =5% of 2,03,890 = Rs. 10,195
Phil’s Commission=5% of profits after charging his own commission & clauses (1) to (5)
 =5/(100+5) of ( 2,10,380-3,000-3,250-240-10,195)
 =5/105 of 1,93,695 = Rs. 9,225

Thanks, Please Like and share with your friends  

Comment if you have any questions.

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

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

Advertisement

Advertisement

Advertisement

error: Content is protected !!