Question 7 Chapter 2 – Unimax Class 12 Part 1
Table of Contents
7. Pass necessary Journal entries and prepare Profit and Loss Appropriation Account of partnership firm (having partner A and B).
| Profit during 2021 (before adjustments given below) | 75000 |
| Interest on Capital | A = Rs. 6000 |
| B = Rs. 3500 | |
| Interest on Drawings | A = Rs. 2800 |
| B = Rs. 2500 | |
| Salary Payable | A = Rs. 350 per month |
| B = Rs. 550 per month | |
| Transfer to General Reserve | Rs. 2000 |
| Profit Sharing Ratio |
3 : 2 |
The solution of Question 7 Chapter 2 – Unimax Class 12 Part 1:
Journal Enteries
| Date | Particulars | L.F. | Debit | Credit | |
| Profit and Loss A/c | Dr. | 75,000 | |||
| To Profit and Loss Appropriation A/c | 75,000 | ||||
| (Being balance of net profit transferred to profit and loss appropriation A/c) | |||||
| Interest on capital A/c | Dr. | ||||
| To A’s Capital A/c | 6,000 | ||||
| To B’s Capital A/c | 3,500 | ||||
| (Being interest on capital provided to partners A &B ) | |||||
| Profit and Loss Appropriation A/c | Dr. | 9,500 | |||
| To Interest on capital A/c | 9,500 | ||||
| (Being transfer of interest on capital to Profit and Loss Appropriation A/c) | |||||
| A’s capital A/c | Dr. | 2,800 | |||
| B’s capital A/c | Dr. | 2,500 | |||
| To Interest on Drawings A/c | 5,300 | ||||
| (Being interest charged on partners’s drawings) |
Journal Enteries
| Date | Particulars | L.F. | Debit | Credit | |
| Interest on Drawings A/c | Dr. | 5,300 | |||
| To Profit and Loss Appropriation A/c | 5,300 | ||||
| (Being transfer of interest on drawings to profit and loss appropriation A/c) | |||||
| Salary A/c | Dr. | 10800 | |||
| To A’s Capital A/c | 4200 | ||||
| To B’s Capital A/c | 6600 | ||||
| (Being Salary provided to partners A & B) | |||||
| Profit and Loss Appropriation A/c | Dr. | 10800 | |||
| To Salary A/c | 10800 | ||||
| (Being transfer out of profit to general reserve) | |||||
| Profit and Loss Appropriation A/c | Dr. | 58000 | |||
| To A’s Capital A/c | 34800 | ||||
| To B’s Capital A/c | 23200 | ||||
| (Being distribution of profit among partners A & B in 3:2) |
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)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication