Question 54 Chapter 2 of +2-Part-1
54. (Profit and loss appropriation a/c, Partners Capital and Current a/c) R, S and T are partners sharing profits and losses in proportion to their capitals in the beginning of the year. They are entitled to draw annually Rs.3,000, Rs.2,500 and Rs.2,000 respectively as out of their anticipated share of profits.
Any drawings in excess of these amounts are to be regarded as advances taken from the firm and are to be subject to interest @18% p.a. the capital in the beginning of the year is to be allowed interest @ 15% p.a.
The capitals of the partners in the beginning of the year were R- Rs. 40,000; S- Rs.30,000 and T- Rs. 20,000. The credit balances of their current accounts were as R- Rs.1,152, S- Rs.1,864 and T- Rs.576
Their drawings during the year were as R- Rs.7,000; S-Rs. 9,500 and T- Rs.3,000. The profit for the year was Rs.30,420 before making any adjustment for interest as above.
Draw up the Profit and Loss appropriation account, Capital and Current accounts of the partners for the year ended 31st March 2018.
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The solution of Question 54 Chapter 2 of +2 Part-1: –
| Profit and Loss Account A/c |
|||||
| Particulars |
Amount | Particulars |
Amount | ||
| To Interest on capital – R | 6,000 | By net profit | 30,420 | ||
| -S | 4,500 | By Interest on drawings – | |||
| -T | 3,000 | 13,500 | R on Rs.4,000(7,000-3,000) | 360 | |
| S on Rs.7,000(9,500-2,500) | 630 | ||||
| T on Rs.1,000(3,000-2,000) | 90 | 1,080 | |||
| To Net profit transferred to Capital a/cs | |||||
| -R- 4/9 | 8,000 | ||||
| -S-3/9 | 6,000 | ||||
| -T-2/9 | 4,000 | 18,000 | |||
| 31,500 | 31,500 | ||||
| Profit and Loss Account A/c |
|||||||||
| Particulars |
R | S | T | Particulars |
R | S | T | ||
| By Balance B/d | 40,000 | 30,000 | 20,000 | ||||||
| To Balance c/d | 40,000 | 30,000 | 20,000 | ||||||
| 40,000 | 30,000 | 20,000 | 40,000 | 30,000 | 20,000 | ||||
| Profit and Loss Account A/c | |||||||||
| Particulars |
R | S | T | Particulars |
R | S | T | ||
| To Drawings A/c | 7,000 | 9,500 | 3,000 | By Balance B/d | 1,152 | 1,864 | 576 | ||
| To interest on Drawings A/c | 360 | 630 | 90 | By Interest on Capital A/c | 6,000 | 4,500 | 3,000 | ||
| By net profit | 8,000 | 6,000 | 4,000 | ||||||
| To Balance c/d | 7,792 | 2,234 | 4,486 | ||||||
| 15,152 | 12,364 | 7,576 | 15,152 | 12,364 | 7,576 | ||||
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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 (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
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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