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

Question 53 Chapter 2 of +2- Part-

Question 53 Chapter 2 of +2-Part-1

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:

   
Phil 8,550 (Dr.)
Gordon 6,550 (Dr.)
Ted 12,000 (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 Account A/c
Particulars
Amount Particulars
Amount
To Interest on capital – Ted 1,500   By net profit 2,07,000  
-Phil 1,000   Add: Gordon’s Salary 3,000 2,10,000
-Gordon 750 3250 By Interest on drawings (WN1)    
To Interest on current a/c     – Ted 21  
-Ted (12,000*4%*6/12)   240 -Phil 27  
To Gordon Salary   3,000 -Gordon 30 78
To Commission to Ted (WN2)   10,195 By 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
-Ted 73,788        
– Phil 73,788        
-Gordon 36,895 1,84,471      
    2,10,380     2,10,380

 

Working Note: –

1. Calculation of Interest on Drawings :

Ted : 200*6 =1200 * 3 ½*6% *1/12 21
Gordon : 400*6 =2400 * 2 ½*6% *1/12 30
Ted : 1800*6% *3/12 27

2. Commission:

Ted’s Commission = 5% of profits after charging clauses (1) to (4)
  = 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

  • Chapter No. 1 – Accounting Not for Profit Organisations
  • Chapter No. 2 – Partnership Accounts – I
  • Chapter No. 3 – Partnership Accounts – II (Introduction)
  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
  • 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 (Balance Sheet Only)
  • Chapter No. 2 – Techniques of Financial Statement Analysis
  • Chapter No. 3 – Ratio Analysis 
  • Chapter No. 4 – Cash Flow Statement

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

2 Book 1 min - Question 53 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.