Question 55 Chapter 2 of +2-A
55. Anshul and Asha are partners sharing profits and losses in the ratio of 3 : 2. Anshul being a non-working partner contributed 8,00,000 as her capital. Asha being a working partner did not contribute capital. The partnership Deed provides for interest on capital @ 5% and salary to every working partner @ 2,000 per month. Net profit before providing for interest on capital and partner′s salary for the year ended 31st March 2019 was 32,000.
The solution of Question 55 Chapter 2 of +2-A:
| Profit and Loss Appropriation Account for the year ended 31st March 2019 |
||||||
| Expenditure |
Amount | Income |
Amount | |||
| To Interest on Capital A/c *1 | By Profit and Loss A/c | 32,000 | ||||
| Anshul’s Capital A/c | 20,000 | |||||
| To Anshul’s Salary A/c *1 | 12,000 | |||||
| 32,000 | 32,000 | |||||
Working Note: –
*1 Calculation of Interest on Anshul’s, Asha’s, & Cherry’s Capital
Interest on Capital = Opening Capital X Rate of Interest
| Interest on Anshul’s Capital | = | 8,00,000 | X | 5 |
| 100 |
Interest on Anshul’s Capital = 40,000/-
Calculation Total amount of salary
Salary to Asha = 2,000 X 12 = 24,000/-
Note: – But the total profit of the firm is equal to Rs 32,000 only and total of Interest on capital and salary is equal 64,000 (40000+24,000)
So, we have to distribute the profit of the firm among the partner in the ratio of interest of capital and Salary.
| Interest on Anshul’s Capital | : | Asha’s Salary |
| 40,000 | : | 24,000 |
| 5 | : | 3 |
| Interest on Anshul’s Capital | = | 32,000 | X | 5 |
| 8 |
Interest on Anshul’s Capital = 20,000/-
| Salary to Asha | = | 32,000 | X | 3 |
| 8 |
Salary to Asha = 12,000/-
Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
