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Question 58 Chapter 2 of +2-Part-1
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Table of Contents
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 |
- 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.
- Each partner took at the end of each quarter % of his drawings.
- P and Q were to be credited with salaries of Rs.2,400 and Rs.1,600 p.a. respectively.
- On 1.7.2015, P paid in additional Rs.2,000 as capital and R withdrew Rs.2,000 from the capital.
- The net profit before charging interest on capital and partners’ salaries and before interest on drawings had been credited was Rs.19,600.
- 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 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 | ||||
| Partners’ Capital 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 | ||||
| Partners’ Current Account | |||||||||
| Particulars | P | Q | R | Particulars | P | Q | R | ||
| 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 | ||||
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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 (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
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