Question 57 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 57 Chapter 2 of +2- Part-

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.

The solution of Question 57 Chapter 2 of +2 Part-1: – 

 

Profit and Loss Account A/c
Particulars
Amount Particulars
Amount
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  
      – Z 132 318
To Net profit transferred to Capital a/cs          
– X 23,954        
– Y 23,954        
– Z
23,953
71,861
     
    1,11,718     1,11,718

 

 

 

Working Note: –

1. Calculation of Interest on Drawings :

X : Rs.2400*6% *6.5/12 = 78
Y: Rs.3,600*6%*6/12 = 108
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
  • Chapter No. 3 – Partnership Accounts – II (Introduction)
  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
  • 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 (Balance Sheet Only)
  • Chapter No. 2 – Techniques of Financial Statement Analysis
  • Chapter No. 3 – Ratio Analysis 
  • Chapter No. 4 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 57 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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