Question 57 Chapter 2 of +2-Part-1
57. (Profit and loss appropriation a/c)X, Y and Z are in partnership with capital of Rs.1,20,000(credit), Rs.1,00,000 (credit) and Rs.8,000 (debit) respectively on1st April,2018. Their partnership deed provided the following:
1. Partners are to be only allowed interest on capital @5% p.a. and are to be charged interest on drawings @6%p.a.
2. X is entitled to a remuneration of 10% of the net profit for securing contacts with customers.
3. Y is also entitled to a commission of 10% of the net profit after charging above clauses.
4. Z is also entitled to a rent of Rs.1,000 per month for the use of premises by the firm.
During the year, X withdrew R.200 at the beginning of every month. Y Rs.300 during the month and Z Rs.400 at the end of every month.
The net profit of the firm for the year ended 31st March 2019 before providing for any of the above clauses was Rs.1,11,000.
From the above you are required to draft only the Profit and Loss Appropriation Account for the year ended 31st March,2019.
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The solution of Question 57 Chapter 2 of +2 Part-1: –
|Profit and Loss Account A/c
|To Interest on capital – X||6,000||By net profit||1,11,000|
|-Y||5,000||11,000||By Interest on capital – Z||400|
|To Z’s rent||12,000||By interest on drawings:|
|To Remuneration to X||8,872||– X||78|
|To Remuneration to Y||7,985||– Y||108|
|To Net profit transferred to Capital a/cs|
Working Note: –
1. Calculation of Interest on Drawings :
|X : Rs.2400*6% *6.5/12||=||78|
|Z : Rs.4800*6% *5.5/12||=||132|
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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