Question 89 Chapter 2 of Class 12 Part - 1 VK Publication

Question 89 Chapter 2 of Class 12 Part – 1

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The solution of Question 89 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

89. Ankur, Bhavna and Disha are partners in a firm. On 1st April 2011 the balance in their capital accounts stood at Rs. 14,00,000, Rs. 6,00,000 and Rs. 4,00,000 respectively. They shared profits in the proportion of 7:3:2 respectively. Partners are entitled to interest on capital @6% per annum and salary to Bhavna @ Rs.50,000 p.a. and a commission of Rs. 3,000 per month to Disha as per the provisions of the partnership deed.
Bhavna’s share of profit (excluding interest on capital) is guaranteed at not less than Rs. 1,70,000 p.a. Disha’s share of profit (including interest on capital but excluding commission) is guaranteed at not less than Rs. 1,50,000 p.a. Any deficiency arising on that account shall be met by Ankur. The profits of the firm for the year ended 31st March 2012 amounted to Rs. 9,50,000. Prepare ‘Profit and Loss Appropriation Account’ for the year ended 31st March 2012.

The solution of Question 89 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

For the year ended 31st March 2017

Particulars		Amount	Particular	Amount
To Interest on Capital A/c:			By Profit b/d	9,50,000
Ankur	84,000
Bhavna	36,000
Disha	24,000	1,44,000
To Salary to Bhavna		50,000
To Commission to Disha		36,000
To Profit transferred to:
Ankur	4,20,000
Less: Deficiency of Disha	6,000	4,14,000
Bhavna		1,80,000
Disha	1,20,000
Add: from Ankur	6,000	1,26,000
		9,50,000		9,50,000

Working Note:

Disha’s share of guaranteed profit (A)	1,50,000
(Including Interest on Capital)
Her share in profit	1,20,000
Her interst on capital	24,000
(B)	1,44,000
Defiency of Disha (A-B)	6,000