Double Entry Book Keeping - Ts Grewal Volume-I 2021-2022
Solutions for Class 12 Commerce Accountancy Chapter 1 - Financial Statements Of Not For Profit Organisations
Page No 2.84:
Question 16;
Atul and Mithun are partners sharing profits m the ratio of 3: 2
Balances as on 1st April 2020 were as follows:
Capital Accounts (fixed): Atul- `5,00,000 and Mithun- `6,00,000
Loan Accounts: Atul - `3,00,000 (Cr.) and Mithun - `2,00,000 (Dr.)
It was agreed to allow and charge interest @ 8% p.a. Partnership Deed provided to allow interest on capital @ 10 p.a. Interest on Drawings was charged `5,000 each.
Profit before giving effect to above was `2,28,000 for the year ended 31st March, 2021.
Prepare Profit and Loss Appropriation Account.
Click on the answer for a clear answerस्पष्ट उत्तर के लिए उत्तर पर क्लिक करें
Answer:
Profit and Loss Appropriation Account
Working Notes:
WN1 Profit After allowed and charged Atul and Mithul Respectively
2,28,000 -24,000 +16,000 = 2,20,000
WN2 interest allowed on loan given by Atul
Interest on loan=3,00,000×8/100 = 24,000
WN3 interest Charged on loan given to Mithul
Interest on loan=2,00,000×8/100=16,000
WN4 Calculation of Interest on Capital
Interst on Atul’s loan=5,00,000×10/100=50,000
Interst on Mithul's loan=6,00,000×10/100=60,000
WN5 Calculation of Profit Share of each Partner
Profit Share of Atul =1,20,000×3/5=72,000
Profit Share of Mithul =1,20,000×2/5=48,000
Page No 2.84:
Question 17:
Reema and Seema are partners sharing profits equally. The Partnership Deed provides that both Reema and Seema will get monthly salary of ` 15,000 each, Interest on Capital will be allowed @ 5% p.a. and Interest on Drawings will be charged @ 10% p.a. Their capitals were ` 5,00,000 each and drawings during the year were ` 60,000 each.
The firm incurred net loss of ` 1,00,000 during the year ended 31st March, 2021.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2021.
Answer:
Profit and Loss Appropriation Account
for the year ended March 31, 2021
Note: Since the firm has incurred loss, no interest on capital and salary will be allowed to the partners. However, interest on drawings will be charged from each of them @ 10% p.a. on the amounts withdrawn by them for an average period of six months.
Page No 2.84:
Question 18:
Bhanu and Partab are partners sharing profits equally. Their fixed capitals as on 1st April, 2020 are ` 8,00,000 and ` 10,00,000 respectively. Their drawings during the year were ` 50,000 and ` 1,00,000 respectively. Interest on Capital is a charge and is to be allowed @ 10% p.a. and interest on drawings is to be charged @ 15% p.a. Profit for the year ended 31st March, 2021 before giving effect to the above was `1,20,000.
Prepare Profit and Loss Appropriation Account.
Answer:
Profit and Loss Appropriation Account
for the year ended March 31, 2021
Page No 2.85:
Question 19:
Amit and Sumit entered into partnership on 1st April, 2020 contributing ` 1,50,000 and ` 2,50,000 respectively towards capital. The Partnership Deed provided for interest on capital @ 10% p.a. It also provided that Capital Accounts shall be maintained following Fixed Capital Accounts method. The firm earned net profit of ` 1,00,000 for the year ended 31st March 2021.
Pass the Journal entry for interest on capital.
Answer:
Journal
Working Notes:
WN1: Calculation of Interest on Capital:
Amit's Interest on Capital=1,50,000×10/100=` 15,000
Sumit's Interest on Capital=2,50,000×10/100=` 25,000
Page No 2.85:
Question 20:
Kamal and Kapil are partners having fixed capitals of ` 5,00,000 each as on 31st March, 2020. Kamal introduced further capital of ` 1,00,000 on 1st October, 2020 whereas Kapil withdrew ` 1,00,000 on 1st October, 2020 out of capital.
Interest on capital is to be allowed @ 10% p.a.
The firm earned net profit of ` 6,00,000 for the year ended 31st March 2021.
Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account.
Answer:
Journal
Profit and Loss Appropriation Account
for the year ended March 31, 2020
Working Notes:
WN1: Calculation of Interest on Capital:
Kamal = (5,00,000×10×6÷100×12) + (6,00,000×10×6÷100×12) = `. 55,000
Kapil=(5,00,000×10×6÷100×1) + (4,00,000×10×6÷100×12) = `. 45,000
0 Comments