Question 62 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 62 Chapter 2 of +2- Part-

Question 62 Chapter 2 of +2-Part-1

62. (Capital ratio) Honest and Sincere are partners in a firm., having total capital of Rs.80,000 of which Rs.50,000 is of Honest and balance is of Sincere on 1st April 2017. As per the partnership deed they are to share profits in capital ratio. Honest brought in additional capital of Rs.15,000 and Rs.20,000 on 1st September 2017 and on 1st Jan.2018, respectively. Sincere introduced Rs.5,000 and Rs.6,000 on 1st December 2017 and 31st March 2018 respectively. Calculate capital ration. The profit for the year ended 31st March 2018 was Rs.68,700.

 

The solution of Question 62 Chapter 2 of +2 Part-1: – 

 

Calculation of Capital ratio:
Honest
Date
Capital
(A)
Months
(B)
Actual Capital Employed
(C=A*B)
1-4-17 50,000 5 2,50,000
1-9-17 65,000 4 2,60,000
1-12-17
1-1-18 85,000 3 2,55,000
31-3-18 0
       
      7,65,000

 

Calculation of Capital ratio:
Sincere
Date
Capital
(A)
Months
(B)
Actual Capital Employed
(C=A*B)
1-4-17 30,000 8 2,40,000
1-9-17
1-12-17 35,000 4 1,40,000
1-1-18
31-3-18 61,000 0
       
      3,80,000

 Capital ratio : 7,65,000: 3,80,000 or 765:380 or 153:76

Working Note: –

1. Interest on capital:

Honest = 68,700 X 153
        229
  = 45,900/-    
         

 

Sincere = 68,700 X 76
        229
  = 22,800/-    
         



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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 62 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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