Question 53 Chapter 2 of Class 12 Part – 1
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.
The solution of Question 53 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 (80,000-500)||79,500|
|Deepa||7,000||By Interest on Drawings|
|To Reserve A/C’s||8,000||Akshay||180||420|
|To Profit Transferred To Capital A/C’s|
Partner’s Capital Account
|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|
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Also, Check out the solved question of all Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution