# Question 55 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-55 - CH-2 - Usha +2 Book 2018 - Solution

Question 55 Chapter 2 of +2-Part-1

55. (P/L appropriation a/c, Partners fixed accounts) Black and White have capital of Rs. 75,000 and Rs.50,000 respectively on 1st April, 2016. They share profits in the ratio of 2:1.
The firm has to transfer 5% of net divisible profits for the cost of a pending law suit. Manager of the firm is to get salaries Rs.25,000. The position of the current accounts is as follows:

 Black Rs.12,000 (Dr.) White Rs.5,000 (Cr.)

Interest on opening capital account is allowed @10% p.a. Black withdraws Rs.20,000 during the year, while White withdraws Rs.1,000 p.m. on the first day of every month. Interest on drawings is calculated @12% p.a. Business earned profits of Rs.1,10,000 during the year before the manager’s salary. Black is to be paid salary @Rs.1500 p.m.
Distribute the profit between Black and White and show the partners capital account and current account.

## The solution of Question 55 Chapter 2 of +2 Part-1: –

Day - 48 | Questions of Partnership - I | Accounts class 12 | PSEB | Sarbjit Singh |

 Profit and Loss App. A/c Particulars Amount Particulars Amount To Interest on capital – Black @10% 7500 By net profit (1,10,000-25,000 manager’s salary) 85,000 -White @10% 5000 12,500 By interest on drawings: (WN2) To Salaries – Black (1500 X 12) 18,000 -Black(20,000 X 12% X 6/12) 1,200 To Contingency Reserve a/c (WN1) 2,690 -White(12,000 X 12% X 6½ /12 780 1,980 To Net profit transferred to Capital a/cs – Black 2/3 35,860 – White 1/3 17,930 53,790 86,980 86,980

 Partners’ Capital A/cs Particulars Black White Particulars Black White By Balance B/d 75,000 50,000 To Balance c/d 75,000 50,000 75,000 50,000 75,000 50,000

 Partners’ Current A/cs Particulars Black White Particulars Black White To Balance b/d 12,000 – By Balance B/d – 5,000 To Drawings A/c 20,000 12,000 By Interest on Capital A/c 7,500 5,000 To interest on Drawings A/c 1200 780 By Salary 18,000 – By P&L Appropriation A/c 35,860 17,930 To Balance c/d 28,160 15,150 61,360 27,930 61,360 27,930

Working Note: –

1. Contingency Reserve (for a pending lawsuit)

5% on net divisible profits means after charging this contingency reserve:
86,980-(12500+18,000) = 56480*5/105 =2690(approx.)

2. Interest on Black’s drawings to be charged for half year only as date of drawings are not mentioned.
Interest on White’s Drawings are charged for 6½ months as drawings are made equally throughout the year on first day of every month.

Comment if you have any questions.

End of Solution

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### Question 62 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

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## Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum

Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.

Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)

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)

## Check out Part 2 of both books.

In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.

1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication

2. Advanced Accountancy Part 2 Class 12 by Unimax Publication