Question 58 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 58 Chapter 2 of +2- Part-

Question 58 Chapter 2 of +2-Part-1

58. (Profit and loss appropriation a/c, capital account & current accounts) From the following information, prepare:
1. The profit and loss appropriation account of P,Q and R for the year ended 31.12.15.
2.The capital and current accounts of P,Q and R are:

Partners Capital(1.1.15) Current (1.1.2015) Drawings (31.12.15)
P 6,000 2,000 (Cr.) 4,000
Q 10,000 1,000 (Cr.) 4,800
R 16,000 1,000 (Cr.) 4,800
  1. Interest is credited @ 6% p.a. on capital and is charged on drawings at the same rate. Interest is neither credited nor charged on the balance of current accounts.
  2. Each partner took at the end of each quarter % of his drawings.
  3. P and Q were to be credited with salaries of Rs.2,400 and Rs.1,600 p.a. respectively.
  4. On 1.7.2015, P paid in additional Rs.2,000 as capital and R withdrew Rs.2,000 from the capital.
  5. The net profit before charging interest on capital and partners’ salaries and before interest on drawings had been credited was Rs.19,600.
  6. Profit and loss shared among P, Q and R were 5:4:3 respectively.

The solution of Question 58 Chapter 2 of +2 Part-1: – 

 

Profit and Loss Account A/c
Particulars
Amount Particulars
Amount
To Interest on capital – P 420   By net profit   19,600
-Q 600   By interest on drawings:    
-R 900 1,920 – P 90  
To Salary- P 2,400   – Q 108  
– Q 1,600 4,000 – R 108 306
           
To Net profit transferred to Capital a/cs          
-P 5,828        
-Q 4,662        
-R 3,496
13,986
     
    19,906     19,906

 

Profit and Loss Account A/c
 
Particulars
P Q R Particulars
P Q R
To bank a/c   2,000 By Balance B/d   6,000 10,000 16,000
To Balance c/d   8,000 10,000 14,000
         
    8,000 10,000 16,000     8,000 10,000 16,000

 

Profit and Loss Account A/c
Particulars
Thread Needle Button Particulars
Thread Needle Button
To Drawings A/c   1,000 1,200 1,200 By Interest on Capital A/c   2,000 1,000 1,000
To Drawings A/c   1,000 1,200 1,200 By Interest on Capital A/c   420 600 900
To Drawings A/c   1,000 1,200 1,200 By salary   2,400 1,600
To Drawings A/c   1,000 1,200 1,200 By net profit   5,828 4,662 3,496
To int. on Drawings A/c   90 108 108          
                   
To Balance c/d   6,558 2,954 488
         
    10,648 7,862 5,396
    10,648 7,862 5,396

 

Working Note: –

1. Interest on capital:

Interest on capital for  = 6% on 6,000 + 6% on 2,000 for 6 months.
  = 360+ 60 = Rs.420
     
Interest on capital for R = 6% on 16,000 for 6 months + 6% on 14,000 for 6 months
  = 480+ 420 = Rs900

2. Interest on drawings:

Interest on drawings for P = 6% on 1,000 for 9 months + 6% on 1,000 for 6 months + 6% on 1,000 for 3 months
  = 45+ 30 +15 = Rs.90
     
Interest on drawings for Q and R = 6% on 1,200 for 9 months + 6% on 1,200 for 6 months + 6% on 1,200 for 3 months
  = 54+ 36 +18 = Rs.108 each



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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 58 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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