# Question 81 Chapter 2 of Class 12 Part – 1 VK Publication

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

Question 81 Chapter 2 of Class 12 Part – 1

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:

 Distribution of Profits : BRs. PRs. LRs. (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

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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)

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

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