Question 59 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 59 Chapter 2 of +2- Part-

Question 59 Chapter 2 of +2-Part-1

59. (Distribution of profit in the capital ratio) A starts business on 1 April 2018 with Rs.20,000. B joins him on 1st July 2018 and contributes Rs.10,000 as his capital. Both of them further bring in Rs.6,000 each on 1st December 2018. During the year ended 31st March 2019, they earned a profit of Rs.56,700. Distribute the profit in capital ratio.

 

The solution of Question 59 Chapter 2 of +2 Part-1: – 

 

Calculation of Capital ratio:
A
Date
Capital
(A)
Months
(B)
Product
(C=A*B)
1-4-18 20,000 12 2,40,000
1-12-18 6,000 4 24,000
       
       
      2,64,000

 

Calculation of Capital ratio:
B
Date
Capital
(A)
Months
(B)
Product
(C=A*B)
1-7-18 10,000 9 90,000
1-12-18 6,000 4 24,000
       
       
      1,14,000

Capital ratio : 264: 114 or 44:19

Working Note: –

1. Interest on capital:

Interest on capital for  = 56,700 X 44
        63
  = 39,600/-    
         

 

B’s share in profits = 56,700 X 19
        63
  = 17,100/-    
         



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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 59 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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