Question 83 Chapter 2 of Class 12 Part - 1 VK Publication

Question 83 Chapter 2 of Class 12 Part – 1

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The solution of Question 83 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

83. P, Q and R are partners with Fixed Capitals of Rs. 1,00,000; Rs. 2,00,000 and Rs. 3,000 respectively. Their partnership deed provides that:
(a) P is to be allowed a monthly salary of Rs. 600 and Q is to be allowed a monthly salary of Rs. 400.
(b) R will be allowed a commission of 5% of the net profit after allowing salaries of P and Q.
(c) Interest is to be allowed on capitals @6%.
(d) Interest will be charged on partner’s annual drawings at 4%.
(e) The annual drawings were: Q Rs. 10,000 and R Rs. 15,000.
The net profit for the year ending 31st March, 2018 amounted to Rs. 1,20,000
Prepare Profit and Loss Appropriation Account.

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The solution of Question 83 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

Particulars		Amount	Particular		Amount
To P’s Salary A/c(600×12)		7,200	By Profit and Loss A/c		1,72,000
To Q’s Salary A/c(400×12)		4,800	By Interest on Drawings A/c:
To R’s Commission A/c		8,000	Q	400
To Interest on Capital A/c:			R	600	1,000
P	6,000
Q	12,000
R	18,000	36,000
To Net Profit transferred to:
P	39,000
Q	39,000
R	39,000	1,17,000
		1,73,000			1,73,000