Question 81 Chapter 2 of Class 12 Part - 1 VK Publication

Question 81 Chapter 2 of Class 12 Part – 1

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The solution of Question 81 Chapter 2 of Class 12 Part – 1: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

81. B, P and L are partners in a firm with capitals of Rs. 70,000; Rs. 60,000 and Rs. 50,000 respectively as on 1st April, 2017. The partnership deed provides that:
(i) Partners are entitled to interest on their capitals @ 10% p.a. (ii) B is to get a salary Rs. 1,000 p.m. (iii) P and L. to get 5% commission each on the net profit.
The drawings of the partners are B Rs. 10,000; P Rs. 10,000 and L Rs.25,000. Firm charged interest on drawings as B Rs. 600; P Rs. 600 and L Rs. 300.
The net profit of the firm for the year ended 31st March, 2018 amounts to Rs. 80,000. Profits and losses shall be shared as under:
(i) up to Rs. 36,000 in the ratio 4:3:2. (ii) above Rs. 36,000 in equal ratio.
Prepare Profit and Loss Appropriation Account and Capital Accounts of the partners when (i) capitals are fixed and (ii) capitals are fluctuating.

The solution of Question 81 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		80,000
B	7,000		By Interest on Drawings A/c
P	6,000		B	600
L	5,000	18,000	P	600
To B’s Salary A/C		12,000	L	300	1,500
TO Partner’s Commission A/c
P	4,000
L	4,000	8,000
To Profit Transferred To Capital A/C’s
B	18,500
P	14,500
L	10,500	43,500
		81,500			81,500

(i) Fixed Capitals Accounts:

Partner’s Capital Account

Particulars	B Rs.	P Rs.	L Rs.	Particular	B Rs.	P Rs.	L Rs.
To Balance c/d	70,000	60,000	50,000	By Balance b/d	70,000	60,000	50,000
	70,000	60,000	50,000		70,000	60,000	50,000

Partner’s Capital Account

Particulars	B Rs.	P Rs.	L Rs.	Particular	B Rs.	P Rs.	L Rs.
To Drawings Account	10,000	10,000	5,000	By Interest on Capital A/c	7,000	6,000	5,000
To Interest on Drawings A/c	600	600	300	By B’s Salary A/C	12,000	–	–
To Balance c/d	26,900	13,900	14,200	By Commission A/C	–	4,000	4,000
				By P & L App. A/c	18,500	14,500	10,500
	37,500	24,500	19,500		37,500	24,500	19,500

(ii) Fluctuating Capitals Accounts:

Partner’s Capital Account

Particulars	B Rs.	P Rs.	L Rs.	Particular	B Rs.	P Rs.	L Rs.
To Drawings Account	10,000	10,000	5,000	By Balance b/d	70,000	60,000	50,000
To Interest on Drawings A/c	600	600	300	By Interest on Capital A/c	7,000	6,000	5,000
To Balance c/d	96,900	73,900	64,200	By B’s Salary A/C	12,000	–	–
				By Commission A/C	–	4,000	4,000
				By P & L App. A/c	18,500	14,500	10,500
	1,07,500	84,500	69,500		1,07,500	44,500	69,500

Working Notes:

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Distribution of Profits :	B Rs.	P Rs.	L Rs.

(I) Upto Rs. 36,000 in the ratio 4:3:2	16,000	12,000	8,000
(ii) Above Rs. 36,000 in the equal ratio ( Rs. 7,500 in the ratio 1:1:1)	2,500	2,500	2,500
	18,500	14,500	10,500