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VDO+ Tag:Question 43 Chapter 2 of Class 12 Part – 1 Usha Publication
43. (Profit and loss adjustment a/c) On April 1, 2018 John and Robert commenced business as partners with an initial capital of Rs.20,000 and Rs.30,000 in their respective accounts. The partnership deed provided inter alia that
1. Profit/Loss shall be shared in the ratio of 2:3 as between John and Robert.
2. Partners shall be entitled to interest on capital at the commencement of each year at 6% p.a. and
3. Interest on drawings shall be charged at 8% p.a.
During the year ended 31-3-2019, the firm made a profit of Rs.19,280 before adjustment of interest on capital and drawings. The partners withdrew during the year Rs.3,000 each at the end of every quarter commencing from 30-6-2018.
You are required to open a profit and loss adjustment account.
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Video Tag:The solution of Question 43 Chapter 2 of Class 12 Part – 1 Usha Publication: –
We are providing a solution of Question 43 Chapter 2 of Class 12 Part – 1 Usha Publication in two formats. one is in Video format and another is in article format. Check out both formats as follows:
1. Check out the Solution of this question in Video Format:-
The video consists solution of questions number from 41 to 45 in Chapter No. 2 class 12 of Usha publication. To check the direct solution of question no. 43 from the following video by using time stamps of the video.
2. Check out the Solution of this question in Article Format: –
| Profit and Loss App. A/c |
|||||
| Particulars |
Amount | Particulars |
Amount | ||
| To Interest on capital – John | 1,200 | By Profit b/d | 19,280 | ||
| -Robert | 1,800 | 3,000 | By interest on drawings: | ||
| -John | 360 | ||||
| -Robert | 360 | 720 | |||
| To Net profit transferred to Capital a/cs | |||||
| -John | 6,800 | ||||
| -Robert | 10,200 | 17,000 | |||
| 20,000 | 20,000 | ||||
| Dr. | Profit and Loss Account A/c |
Cr. | |||||
| Particulars |
John | Robert | Particulars |
John | Robert | ||
| To Drawings A/c | 12,000 | 12,000 | By Balance b/d | 20,000 | 30,000 | ||
| To Interest on Drawings A/c | 360 | 360 | By Interest on Capital A/c | 1,200 | 1,800 | ||
| By P&L Adjustment A/c | 6,800 | 10,200 | |||||
| To Balance c/d | 15,640 | 29,640 | |||||
| 28,000 | 42,000 |
28,000 | 42,000 | ||||
Working Note: –
Calculation of Interest on A’s Drawings:
We will do it with the product method because of partner withdrawal a different amount every time.
| Date |
Amount (A) |
Period Left after(B) | Product (C=A*B) |
| 30-6-18 | 3,000 | 9 | 27,000 |
| 30-9-18 | 3,000 | 6 | 18,000 |
| 31-1218 | 3,000 | 3 | 9,000 |
| 31-3-19 | 3,000 | 0 | 0 |
| Sum of Product | 54,000 | ||
| Interest on Drawing | = | 54,000 | X | 8 | X | 1 |
| 100 | 12 | |||||
| Interest on Drawing | = | 360/- |
End of Solution
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 2 – Partnership Accounts – I (Basic Concepts) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
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)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
Check out Part 2 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication