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Question 79 Chapter 2 of Class 12 Part – 1
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79. Shankar and Jaikishan are partners with a capital of Rs.40,000 and Rs. 20,000 on which they agree to allow interest @6% p.a. Their respective share of profit is 2:3. The profits prior to interest for the year are Rs. 3,000. Calculate interest on capital and show Profit and Loss Appropriation Account when (a) interest on capital is not a charge on profits (b) interest on capital is a charge on profits.
The solution of Question 79 Chapter 2 of Class 12 Part – 1: –
Case (a)
Profit and Loss Appreciation Account
| Particulars |
| Amount | Particular | Amount |
| To Interest On Capital A/C: | By Profit And Loss A/C | 3,000 | ||
| Shankar | 2,000 | |||
| Jaikishan | 1,000 | 3,000 | ||
| 3,000 | 3,000 |
Case (b)
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Profit and Loss Appreciation Account
| Particulars |
| Amount | Particular | Amount | |
| To Interest On Capital A/C: | By Profit And Loss A/C | 3,000 | |||
| Shankar | 2,400 | By Loss transferred to Capital A/c: | |||
| Jaikishan | 1,200 | 3,600 | Shankar | 240 | |
| Jaikishan | 360 | 600 | |||
| 3,600 | 3,600 |
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Also, Check out the solved question of all Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Chapter No. 1 – Accounting Not for Profit Organisations
Chapter No. 2 – Partnership Accounts – I (Introduction)
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Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Chapter No. 8 – Company Accounts (Share Capital)
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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
Chapter No. 2 – Financial Statement Analysis
Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 4 – Ratio Analysis
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Chapter No. 5 – Cash Flow Statement
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