Question 6 Chapter 2 of Class 12 Part - 1 VK Publication

Question 6 Chapter 2 of Class 12 Part – 1

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The solution of Question 6 Chapter 2 of Class 12 Part – 1: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

6. Kunal and Pawan were partners in a firm sharing profits in 4:3 ratio. Their capitals on 1.4.2017 were: Kunal Rs. 1,12,000 and Pawan Rs. 84,000. The partnership deed provided as follows:
(i) Interest on capital and drawings will be allowed and charged @ 12% pa and 10% pa. respectively.
(ii) Kunal and Pawan will be entitled to get monthly salary of Rs. 2,800 and Rs. 4,200 respectively.
The profits for the year ended 31.3.2018 were Rs. 1,40,420. The drawings of Kunal and Pawan were Rs. 56,000 and Rs. 70,000 respectively. Interest on Kunal’s drawings was Rs. 2,800 and Pawan’s drawings Rs. 3,500.
Prepare Profit and Loss Appropriation Account of Kunal and Pawan for the year ended 31.3.2018 assuming that the capitals of the partners were fluctuating.

The solution of Question 6 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

(For the year ended 31st March, 2018)

Particulars		Amount	Particulars		Amount
To Interest on Capital A/c:			By Net Profit		1,40,420
Kunal	13,440
Pawan	10,080	23,520	By Interest on Drawings
To Partner’s Salary A/C			Kunal	2,800
Kunal	33,600		Pawan	3,500	6,300
Pawan	50,400	84,000
To Profit Transferred To Capital A/C’s
Kunal	22,400
Pawan	16,800	39,200
		1,46,720			1,46,720