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Question 55 Chapter 2 of +2-Part-1
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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: –
| 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 | ||||
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| 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.
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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)
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Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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