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Question 80 Chapter 2 of Class 12 Part – 1 VK Publication

Question 80 Chapter 2 of Class 12 Part - 1 VK Publication
Question 80 Chapter 2 of Class 12 Part - 1 VK Publication

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Question 80 Chapter 2 of Class 12 Part – 1

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80. D, E and Fare partners sharing profits and losses in the ratio of 3:2:1 with capitals Rs. 55,000, Rs. 35,000 and Rs. 20,000 respectively and their current account balances were D Rs. 5,500 (Cr.); E Rs. 2,500 (Dr.); F Rs. 750 (Cr.) as on 31st March, 2018. Interest to be provided on capitals and drawings is 5% p.a. and 6% p.a. respectively. Drawings made by partners D Rs. 5,000: E Rs. 3,000 and F Rs. 2,000.
Before closing the accounts, it was discovered that a car repair bill of D of Rs. 2,500 was charged to profit and loss Account. Also medical expenses of F of Rs. 1,200 were charged to the firm. The repair of machinery amounting to Rs. 35,000 has been debited to machinery account and depreciation at 10% has been charged on it. Profit earned during the year was Rs. 40,000.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018 and Partners Current Accounts.

The solution of Question 80 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

For the year ended on 31st March 2017

Particulars 

 

Amount

Particular

 Amount
To Interest On Capital A/C:  By Profit And Loss A/C 39,200
D2,750 By Interest on Drawings A/c  
E1,750 D150 
F1,0005,500E90 
To Profit Transferred To Capital A/C’s  F60300
D17,000    
E11,333    
F5,66734,000   
  39,500  39,50

Partner’s Capital Account

Particulars 

D Rs. 

E Rs.

F Rs.

Particular

D Rs. E Rs.F Rs.
To Balance b/d2,500By Balance b/d5,500750
To Drawings A/c5,0003,0002,000`By Interest on Capital A/c2,7501,7501,000
To Interest on Drawings A/c1509060By Profit and loss App. A/c17,00011,3335,667
To Repair Bill A/c2,500    
To Medical Expenses1,200    
To Balance c/d17,6007,4934,157    
 25,25013,0837,417 25,25013,0837,417

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Working Note:

1. Calculation of distributable Profits :Rs.Rs.
Firm’s Profit 40,000
Add: Car Repair bill of D2,500 
Add: Medical Expenses of F1,2003,700
  43,700
Less: Repair of Machinery [5,000-500(Dep.)] 4,500
  39,200

2. Car Repair Bill of E and Medical Expenses of F are not considered as drawings as it is assumed that they are wrongly debited to Profit and Loss Account. 

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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

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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)

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)

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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

Chapter No. 2 – Financial Statement Analysis

Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size

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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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