Question 6 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 6 Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 6 Chapter 2 – Unimax Class 12 Part 1

6. P and Q are partners sharing Profits and Losses in the ratio of 3:2 with their capitals on 1st January, 2021 as Rs. 300000 and Rs. 100000 respectively. Interest on Capital is allowed @ 5% per annum. Q is allowed an annual Salary of Rs. 3000 which he has not withdrawn. During 2021, the profit prior to calculation of interest but after charging Q’s salary amounted to Rs. 45000. Prepare Profit and Loss Appropriation Account showing allocation of profits.

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

Profit & Loss Appropriation Account For the year ended Dec. 31, 2006.

Particulars   Rs. Particulars Rs.
To Q’s Capital A/c (Salary)   3000 By Net Profit (45000 + 3000)
(profit as per profit and loss A/c)
48000
To Interest on Capital A/c        
– P 15000      
– Q 5000 20000    
To Profit transferred to Capital A/c        
– P (25000 x 3/5) 15000      
– Q (25000 x 2/5) 10000 25000    
         
    48000   48000

https://tutorstips.com/not-for-profit-organisations/

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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

 

Leave a Reply

Your email address will not be published. Required fields are marked *