Question 53 Chapter 2 of Class 12 Part - 1 VK Publication

Question 53 Chapter 2 of Class 12 Part – 1

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The solution of Question 53 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

53. Deepa and Akshay are partners in a firm sharing profits and losses in the ratio of 2: 1. Their capital accounts as on 1st April, 2017 stand at Rs. 70,000 and Rs. 30,000 respectively. The partners are allowed interest on capital @10% p.a. The drawings of the partners during the year ended 31st March, 2018 amounted to Rs. 4,800 and Rs. 3,600 respectively. Interest is charged on drawings at the rate of 10% p.a.
Deepa has given a loan to firm as on 1st November, 2017 of Rs.20,000.
The profit of the firm before above adjustments was Rs. 80,000. 10% of this profit is to be kept in a Reserve Account.
Current Account balances on 1st April, 2017 were Deepa Rs. 5,000 (Cr.); Akshay Rs. 23,000 (Dr)
Prepare Profit and Loss Appropriation Account and Partners’ Current Accounts.

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The solution of Question 53 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 (80,000-500)		79,500
Deepa	7,000		By Interest on Drawings
Akshay	3,000	1,0000	Deepa	240
To Reserve A/C’s		8,000	Akshay	180	420
To Profit Transferred To Capital A/C’s
Deepa	41,280
Akshay	20,640	61,920
		79,920			79,920

Partner’s Capital Account

Particulars	Deepa Rs.	Akshay Rs.	Particulars	Deepa Rs.	Akshay Rs.
To Balance b/d	–	23,000	By Balance b/d	5,000	–
To Interest on Drawings	240	180	By Interest on Capital	7,00	3,000
To Drawings Account	4,800	3,600	By P & L App. A/c	41,820	20,640
To Balance c/d	48,240	–	By Balance c/d	–	3,140
	53,280	26,780		53,280	26,780