Question 11;
Nirmal and Pawan are partners sharing profits in the ratio of 3 :2. The firm had given loan to Pawan of `5,00,000 on 1st April, 2021. Interest was to be charged @ 10% p.a. The firm took loan of `2,00,000 from Nirmal on 1st October, 2021. Before giving effect to the above, the firm incurred a loss of `10,000 for the year ended 31st March, 2022.
Determine the amount to be transferred to Profit and Loss Appropriation Account.
Answer;
|
Profit and Loss Account year ended 31 March,
2022 |
|||
|
Particulars |
` |
Particulars |
` |
|
To Net Loss
To interest on loan
(Nirmal) 2,00,000×6/100×6/12 To Net Profit
transferred- (Net Profit transferred to P&L
Appropriation a/c) |
10,000 6,000 34,000 |
by interest on loan
(Pawan) 5,00,000×10/100 |
50,000 |
|
|
50,000 |
|
50,000 |
Question 12;
Ankit, Bhanu and Charu are partners in a firm
sharing profits and losses equally with capital of `2,50,000
each. On 1st October, 2021, Ankit and Bhanu gave loans of `2,50,000
each to the firm whereas Charu took a loan of
`1,00,000 from the firm on the same date. It was
agreed among the partners that Charu will be charged Interest @ 6% pa. Interest
on loan from partners was paid on 10th April, 2022.The firm closes its books on
31st March each year.
Pass the Journal entries in the books of the firm
for the year ended 31st March, 2022.
Answer;
|
Date |
Particulars |
|
L.F. |
Dr. ` |
Cr. ` |
|
31 March |
Interest on loan
A/c To Akhil’s loan A/c To Bhanu’s loan A/c (Being interest on
loan provided @ 6% p.a. on 2,50,000 for six month) |
Dr. Dr. |
|
15,000 3,000 |
7,500 7,500 3,000 |
|
Charu’s capital A/c To
Interest on loan A/c
(Being interest on
loan allowed to Charu@ 6% p.a. on 1,00,000 for six month) |
|||||
|
|
|
|
|
18,000 |
18,000 |
Question 13:
Vinod and Mohan
are partners. Vinod 's Capital is ` 1,00,000 and Mohan 's Capital is ` 60,000. Interest on
capital is payable @ 6% p.a. Mohan is entitled to a salary of ` 3,000
per month. Profit for the current year before interest and salary to Mohan is ` 80,000.
Prepare Profit and Loss Appropriation Account.
Answer:
|
Profit and Loss
Appropriation Account |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
|
Interest on Capital: |
|
Profit and Loss A/c (Net
Profit) |
80,000 |
|
|
Vinod’s Capital A/c |
6,000 |
|
|
|
|
Mohan’s Capital A/c |
3,600 |
9,600 |
|
|
|
Salary to B (` 3,000 × 12) |
36,000 |
|
|
|
|
Profit transferred to: |
|
|
|
|
|
Vinod’s Capital A/c |
17,200 |
|
|
|
|
Mohan’s Capital A/c |
17,200 |
34,400 |
|
|
|
|
80,000 |
|
80,000 |
|
|
|
|
|
|
|
Working Notes:
WN1 Calculation of Interest on
Capital
Interest
on Vinod’s
loan=1,00,000×6/100×6/12=6,000
Interest
on Mohan's loan=60,000×6/100×6/12=3,600
WN 2 Calculation of Profit
Share of each Partner
Divisible
Profit = 80,000 –
9,600 –
36,000 = 34,400
Profit
share of Vinod
and Mohan =34,400×1/2=17,200
Question 14:
X, Y and Z are
partners in a firm sharing profits in 2 : 2 : 1 ratio. The fixed capitals of
the partners were : X `5,00,000; Y ` 5,00,000 and Z ` 2,50,000
respectively. The Partnership Deed provides that interest on capital is to be
allowed @ 10% p.a. Z is to be allowed a salary of ` 2,000 per month. The profit of the firm for the year ended 31st
March, 2022 after debiting Z's salary was ` 4,00,000.
Prepare Profit and Loss Appropriation Account.
Answer:
|
Profit and Loss Appropriation Account |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
` |
Particulars |
` |
||
|
Interest on Capital: |
|
Profit and Loss
A/c |
4,00,000 |
||
|
X’s Capital A/c |
50,000 |
|
|
|
|
|
Y’s Capital A/c |
50,000 |
|
|
|
|
|
Z’s Capital A/c |
25,000 |
1,25000 |
|
|
|
|
Profit transferred to: |
|
|
|
||
|
X’s Capital A/c |
1,10,000 |
|
|
|
|
|
Y’s Capital A/c |
1,10,000 |
|
|
|
|
|
Z’s Capital A/c |
55,000 |
2,75,000 |
|
|
|
|
|
4,00,000 |
|
4,00,000 |
||
|
|
|
|
|
||
Working Notes:
WN 1
Salary to Z has not been debited to Profit and Loss Appropriation Account. This
is because Profit of ` 4,00,000 is given after
adjusting the Z’s salary.
WN 2 Calculation of Interest on
Capital
Interest
on X^' s Capital=5,00,000×10/100=50,000
Interest
on Y's Capital=5,00,000×10/100=50,000
Interest
on Z' s Capital=2,50,000×10/100=25,000
WN 3 Calculation of Profit
Share of each Partner
Divisible
of Profit after Interest on Capital = ` 4,00,000- ` 1,25,000 = ` 2,75,000
Profit
sharing ratio = 2 : 2 : 1
Profit
share of X' s =5,00,000×2/5=1,10,000
Profit
share of Y' s =5,00,000×2/5=1,10,000
Profit
share of Z' s=5,00,000×1/5=55,000
Question 15:
X and Y are
partners sharing profits in the ratio of 3 : 2 with capitals of ` 8,00,000 and ` 6,00,000
respectively. Interest on capital is agreed @ 5% p.a. Y is to be allowed an
annual salary of ` 60,000 which has not
been withdrawn. Profit for the year ended 31st March, 2022 before interest on
capital but after charging Y's salary amounted to ` 2,40,000.
A provision of 5% of the profit is to be made in respect commission to the
manager. Prepare an account showing the allocation profits.
Answer:
|
Profit and Loss Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
( `) |
Particulars |
( `) |
|
Manager’s Commission (3,00,000×5%) |
15,000 |
Profit and Loss
A/c |
2,40,000 |
|
|
|
Y’s Salary |
60,000 |
|
Profit transferred to Profit and Loss |
|
|
|
|
Appropriation A/c |
2,85,000 |
|
|
|
|
3,00,000 |
|
3,00,000 |
|
|
|
|
|
|
Profit and Loss Appropriation Account |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
( `) |
Particulars |
( `) |
|
|
Salary to Y |
60,000 |
Profit and Loss Adjustment A/c |
2,85,000 |
|
|
Interest on Capital: |
|
(After manager’s commission) |
|
|
|
X’s Capital A/c |
40,000 |
|
|
|
|
Y’s Capital A/c |
30,000 |
70,000 |
|
|
|
Profit transferred to: |
|
|
|
|
|
X’s Capital A/c |
93,000 |
|
|
|
|
Y’s Capital A/c |
62,000 |
1,55,000 |
|
|
|
|
2,85,000 |
|
2,85,000 |
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Manager’s Commission
Profit for making Managers’ Commission = 2,40,000 + 60,000 (Y’s Salary) = `3,00,000
Manager's Commission=₹3,00,000×5/100=₹15,000
WN 2 Calculation of Interest on
Capital
Interest on X's Capital A/c=₹8,00,000×5/100= ₹40,000 Interest on Y's Capital A/c=₹6,00,000×5/100=₹30,000
WN 3 Calculation of Profit Share of each Partner
Profit available for distribution = 2,85,000 - ` 60,000 - ` 70,000 = `1,55,000
X's Share of Profit=₹1,55,000×3/5=₹93,000
Y's Share of Profit=₹1,55,000×2/5=₹62,000
Ts Grewal Solution 2022-2023
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Class 12 / Volume – I
Chapter 1 – Accounting For Partnership Firms Fundamentals
Question No. 1 To 5
Question No. 5 To 10
Question No. 11 To 15
Question No. 16 To 20
Question No. 21 To 25
Question No. 26 To 30
Question No. 31 To 35
Question No. 36 To 40
Question No. 41 To 45
Question No. 46 To 50
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