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Question 8 Chapter 2 of Class 12 Part – 1 VK Publication

Question 8 Chapter 2 of Class 12 Part - 1 VK Publication
Question 8 Chapter 2 of Class 12 Part - 1 VK Publication

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Question 8 Chapter 2 of Class 12 Part – 1

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8. M , N and O were partners in a firm having capitals of Rs. 72,000; Rs. 72,000 and Rs. 96,000 respectively. Their Current Account balances were M: Rs. 12,000; N: Rs. 6,000 and O: Rs. 2, 400 According to the partnership deed, the partners were entitled to interest on capital @ 5% pa. O being the working partner was also entitled to a salary of Rs. 7,200 p.a. The profits w to be divided as follows:
(a) The first Rs. 24,000 in proportion to their capitals.
(b) Next Rs. 36,000 in the ratio of 5:3:2.
(c) Remaining profits to be shared equally.
The firm made a profit of Rs. 1,87,200 before charging any of the above items. Prepare the Profit and Loss Appropriation Account and pass necessary journal entry fr apportionment of profit.

The solution of Question 8 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

Particulars  AmountParticulars Amount
To Interest on Capital A/c:  By Net Profit1,87,200
M3,600   
N3,600   
O4,80012,000  
To Salary To O 7,200  
To Profit transferred to Current A/c:    
M(7,200+18,000+36,000)61,200   
N(7,200+10,800+36,000)54,000   
O(9,600+7,200+36,000)52,8001,68,000  
  1,87,200 1,87,200

Journal

Particulars 
 
Dr.Cr.
Profit and Loss Appropriation A/cDr.1,68,000 
To M’s Current A/c  61,200
To N’s Current A/c  54,000
To O’s Current A/c  52,800
(Being profit appropriated among the partners)   

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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)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

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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)

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

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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

Chapter No. 5 – Cash Flow Statement

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms 

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