Question 55 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 55 Chapter 2 of +2-A

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
Ratio 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)

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

2 Book 1 min - Question 55 Chapter 2 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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