Class 15 Double Entry Book Keeping Ts Grewal (2016) Solutions for Class 12 Commerce Accountancy Chapter 2 Partnership Accounts are provided here with simple step-by-step explanations. These solutions for Partnership Accounts are extremely popular among class 12 Commerce students for Accountancy Partnership Accounts Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Class 15 Double Entry Book Keeping Ts Grewal (2016) Book of class 12 Commerce Accountancy Chapter 2 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Class 15 Double Entry Book Keeping Ts Grewal (2016) Solutions. All Class 15 Double Entry Book Keeping Ts Grewal (2016) Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.
Page No 2.78:
Question 1:
Answer:
Yes, A has contravened the provisions of Partnership law. In the absence of Partnership deed, the following provisions of Indian Partnership Act, 1932 applies:
(b) Interest on Capital is not allowed to any of the partners, therefore, it should not be provided to both A and B.
(c) Interest on loan @ 6% p.a. is a charge against profit and should have been debited to Profit and Loss A/c. Similarly, Rent is a charge and it should also be debited to Profit and Loss A/c.
(d) Profit (after charging interest on loan @ 6% p.a. and rent) is to be distributed equally.
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |||
Profit transferred to: |
Profit and Loss A/c (Net Profit)
|
51,000 | ||||
A’s Capital A/c
|
25,500 | (60,000 – 6,000 – 3,000) | ||||
B’s Capital A/c
|
25,500 | 51,000 | ||||
51,000 | 51,000 | |||||
Page No 2.78:
Question 2:
Yes, A has contravened the provisions of Partnership law. In the absence of Partnership deed, the following provisions of Indian Partnership Act, 1932 applies:
(b) Interest on Capital is not allowed to any of the partners, therefore, it should not be provided to both A and B.
(c) Interest on loan @ 6% p.a. is a charge against profit and should have been debited to Profit and Loss A/c. Similarly, Rent is a charge and it should also be debited to Profit and Loss A/c.
(d) Profit (after charging interest on loan @ 6% p.a. and rent) is to be distributed equally.
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |||
Profit transferred to: |
Profit and Loss A/c (Net Profit)
|
51,000 | ||||
A’s Capital A/c
|
25,500 | (60,000 – 6,000 – 3,000) | ||||
B’s Capital A/c
|
25,500 | 51,000 | ||||
51,000 | 51,000 | |||||
Answer:
In the absence of Partnership deed:
(b) Since, rent is a charge against profit, thus, it will be debited to Profit & Loss Account
(c) Profit after interest on loan @ 6% p.a. and rent is to be distributed equally between the partners.
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs. | Particulars | Amount Rs. | |
Profit transferred to: | Profit and Loss A/c | 1,22,750 | ||
X’s Capital A/c
|
61,375 | (1,50,000 – 25,000 – 2,250) | ||
Y’s Capital A/c
|
61,375 | 1,22,750 | ||
1,22,750 | 1,22,750 | |||
Working Notes: Calculation of Interest on X’s Loan
Page No 2.78:
Question 3:
In the absence of Partnership deed:
(b) Since, rent is a charge against profit, thus, it will be debited to Profit & Loss Account
(c) Profit after interest on loan @ 6% p.a. and rent is to be distributed equally between the partners.
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs. | Particulars | Amount Rs. | |
Profit transferred to: | Profit and Loss A/c | 1,22,750 | ||
X’s Capital A/c
|
61,375 | (1,50,000 – 25,000 – 2,250) | ||
Y’s Capital A/c
|
61,375 | 1,22,750 | ||
1,22,750 | 1,22,750 | |||
Working Notes: Calculation of Interest on X’s Loan
Answer:
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
||||
Dr. |
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Interest on X’s Capital |
1,25,000 |
Profit and Loss A/c |
2,00,000 |
|
Y’s Salary |
75,000 |
|
|
|
|
2,00,000 |
|
2,00,000 |
|
|
|
|
|
Working Note:
Salary to Y @ 20,000 p.m = Rs 2,40,000
Total appropriation to be made = 4,00,000 + 2,40,000 = Rs 6,40,000
Profit earned during the year = 2,00,000
Here, profit available for distribution (i.e. Rs 2,00,000) is less than the sum total of Interest on Capital and Salary (i.e. Rs 6,40,000).
Therefore, profit will be distributed in the ratio of Interest on Capital and Salary.
Note: The answer provided in the book is incorrect as interest on capital will only to be provided to X since he has contributed the capital amount.
Page No 2.78:
Question 4:
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
||||
Dr. |
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Interest on X’s Capital |
1,25,000 |
Profit and Loss A/c |
2,00,000 |
|
Y’s Salary |
75,000 |
|
|
|
|
2,00,000 |
|
2,00,000 |
|
|
|
|
|
Working Note:
Salary to Y @ 20,000 p.m = Rs 2,40,000
Total appropriation to be made = 4,00,000 + 2,40,000 = Rs 6,40,000
Profit earned during the year = 2,00,000
Here, profit available for distribution (i.e. Rs 2,00,000) is less than the sum total of Interest on Capital and Salary (i.e. Rs 6,40,000).
Therefore, profit will be distributed in the ratio of Interest on Capital and Salary.
Note: The answer provided in the book is incorrect as interest on capital will only to be provided to X since he has contributed the capital amount.
Answer:
Calculation of Interest on Capital
Case (a)
Where there is no clean agreement except for interest on capitals
Profit for the year ended = Rs 1,500
Total amount of interest = Rs 1,800
Here, total amount of interest on capital is more than the profit available for distribution. Therefore, profit of Rs 1,500 is distributed between X and Y in the ratio of their interest on capital.
Particulars |
X |
: |
Y |
Interest on Capital |
1,200 |
: |
600 |
or, Ratio of interest on Capital |
2 |
: |
1 |
Case (b)
In case, there is a clear agreement that the interest on capital will be allowed even if the firm has incurred loss, then the whole amount of interest on capital is to be allowed to the partners.
Total Profit of the firm = Rs 1,500
Total amount of Interest on Capital = Rs 1,800 (i.e. Rs 1,200 + Rs 600). Therefore, loss to the firm amounts to Rs 300. This loss is to shared by X and Y in their profit sharing ratio that is 2 : 3.
Page No 2.79:
Question 5:
Calculation of Interest on Capital
Case (a)
Where there is no clean agreement except for interest on capitals
Profit for the year ended = Rs 1,500
Total amount of interest = Rs 1,800
Here, total amount of interest on capital is more than the profit available for distribution. Therefore, profit of Rs 1,500 is distributed between X and Y in the ratio of their interest on capital.
Particulars |
X |
: |
Y |
Interest on Capital |
1,200 |
: |
600 |
or, Ratio of interest on Capital |
2 |
: |
1 |
Case (b)
In case, there is a clear agreement that the interest on capital will be allowed even if the firm has incurred loss, then the whole amount of interest on capital is to be allowed to the partners.
Total Profit of the firm = Rs 1,500
Total amount of Interest on Capital = Rs 1,800 (i.e. Rs 1,200 + Rs 600). Therefore, loss to the firm amounts to Rs 300. This loss is to shared by X and Y in their profit sharing ratio that is 2 : 3.
Answer:
(i) When Partnership deed is silent about the treatment of Interest on Capital:
Profit and Loss Appropriation Account | |||||
Dr. | Cr. | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | ||
Interest on Capital: (WN i) | Profit and Loss A/c (Net Profit) | 60,000 | |||
X’s Capital A/c
|
40,000 | ||||
Y’s Capital A/c
|
20,000 | 60,000 | |||
60,000 | 60,000 | ||||
(ii) When interest is a charge as per the Partnership Deed
Profit and Loss Appropriation Account | |||||||
Dr. | Cr. | ||||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | ||||
Interest on Capital: | Profit and Loss A/c (Net Profit) | 60,000 | |||||
X’s Capital A/c
|
48,000 | ||||||
Y’s Capital A/c
|
24,000 | 72,000 | Loss transferred to: | ||||
X’s Capital A/c
|
7,200
|
||||||
Y’s Capital A/c
|
4,800 | 12,000 | |||||
72,000 | 72,000 | ||||||
Working Notes: Calculation of Interest on Capital
(i) Since, partnership deed is silent regarding the treatment of interest on capital, therefore, it will be treated as an appropriation out of profits and interest will be allowed to extent of available profits.
(ii) Interest is to be treated as a charge against profits, thus, full amount of interest on capital is to be provided.
Page No 2.79:
Question 6:
(i) When Partnership deed is silent about the treatment of Interest on Capital:
Profit and Loss Appropriation Account | |||||
Dr. | Cr. | ||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | ||
Interest on Capital: (WN i) | Profit and Loss A/c (Net Profit) | 60,000 | |||
X’s Capital A/c
|
40,000 | ||||
Y’s Capital A/c
|
20,000 | 60,000 | |||
60,000 | 60,000 | ||||
(ii) When interest is a charge as per the Partnership Deed
Profit and Loss Appropriation Account | |||||||
Dr. | Cr. | ||||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | ||||
Interest on Capital: | Profit and Loss A/c (Net Profit) | 60,000 | |||||
X’s Capital A/c
|
48,000 | ||||||
Y’s Capital A/c
|
24,000 | 72,000 | Loss transferred to: | ||||
X’s Capital A/c
|
7,200
|
||||||
Y’s Capital A/c
|
4,800 | 12,000 | |||||
72,000 | 72,000 | ||||||
Working Notes: Calculation of Interest on Capital
(i) Since, partnership deed is silent regarding the treatment of interest on capital, therefore, it will be treated as an appropriation out of profits and interest will be allowed to extent of available profits.
(ii) Interest is to be treated as a charge against profits, thus, full amount of interest on capital is to be provided.
Answer:
Interest on capital is calculated on the opening balance of partner’s capital.
Calculation of Capital balance at the beginning
Particulars |
Ram |
Mohan |
Capital at the end |
24,000 |
18,000 |
Less: Profit already credited (1:1) |
(8,000) |
(8,000) |
Add: Drawings already debited |
4,000 |
6,000 |
Capital at the beginning |
20,000 |
16,000 |
|
|
|
Page No 2.79:
Question 7:
Interest on capital is calculated on the opening balance of partner’s capital.
Calculation of Capital balance at the beginning
Particulars |
Ram |
Mohan |
Capital at the end |
24,000 |
18,000 |
Less: Profit already credited (1:1) |
(8,000) |
(8,000) |
Add: Drawings already debited |
4,000 |
6,000 |
Capital at the beginning |
20,000 |
16,000 |
|
|
|
Answer:
Assuming the capitals of the partners are fixed, interest on capital will be calculated on their fixed capital (i.e. Rs 24,000 for Ram and Rs 18,000 for Mohan)
Page No 2.79:
Question 8:
Assuming the capitals of the partners are fixed, interest on capital will be calculated on their fixed capital (i.e. Rs 24,000 for Ram and Rs 18,000 for Mohan)
Answer:
Calculation of Interest on B’s Capital
Particulars |
Amount Rs |
B’s Capital balance as on March 31, 2016 |
40,000 |
Less: Profit adjusted in B’s Capital |
(5,000) |
Add: Drawings |
15,000 |
Capital Balance at the beginning (as on April 01, 2015) |
50,000 |
|
|
Page No 2.79:
Question 9:
Calculation of Interest on B’s Capital
Particulars |
Amount Rs |
B’s Capital balance as on March 31, 2016 |
40,000 |
Less: Profit adjusted in B’s Capital |
(5,000) |
Add: Drawings |
15,000 |
Capital Balance at the beginning (as on April 01, 2015) |
50,000 |
|
|
Answer:
Calculation of opening capital balance
Particulars | X | Y |
Capital at the end | 10,000 | 8,000 |
Less: Profit already credited
|
(1,000) | (1,000) |
Add: Drawings already debited
|
3,000 | |
Opening Capital | 9,000 | 10,000 |
Page No 2.79:
Question 10:
Calculation of opening capital balance
Particulars | X | Y |
Capital at the end | 10,000 | 8,000 |
Less: Profit already credited
|
(1,000) | (1,000) |
Add: Drawings already debited
|
3,000 | |
Opening Capital | 9,000 | 10,000 |
Answer:
Calculation of Interest on Capital
Calculation of Interest on Current Account Balances
Page No 2.79:
Question 11:
Calculation of Interest on Capital
Calculation of Interest on Current Account Balances
Answer:
Calculation of Interest on Capital
Calculation of Interest on Current Account Balances
Page No 2.80:
Question 12:
Calculation of Interest on Capital
Calculation of Interest on Current Account Balances
Answer:
Calculation of Interest on Capital
Calculation of Opening Current Account Balances
For A
Closing Current Account Balance |
40,000 |
Add: Drawings |
36,000 |
Less: Profit Share |
30,000 |
Opening Current Account Balance |
46,000 |
For B
Closing Current Account Balance |
(50,000) |
Add: Drawings |
36,000 |
Less: Profit Share |
30,000 |
Opening Current Account Balance |
(44,000) |
Calculation of Interest on Current Account Balances
Page No 2.80:
Question 13:
Calculation of Interest on Capital
Calculation of Opening Current Account Balances
For A
Closing Current Account Balance |
40,000 |
Add: Drawings |
36,000 |
Less: Profit Share |
30,000 |
Opening Current Account Balance |
46,000 |
For B
Closing Current Account Balance |
(50,000) |
Add: Drawings |
36,000 |
Less: Profit Share |
30,000 |
Opening Current Account Balance |
(44,000) |
Calculation of Interest on Current Account Balances
Answer:
In this question, date of drawings made by the partners is not given. Therefore, interest on drawings is calculated on average basis for a period of six months.
Page No 2.80:
Question 14:
In this question, date of drawings made by the partners is not given. Therefore, interest on drawings is calculated on average basis for a period of six months.
Answer:
Page No 2.80:
Question 15:
Answer:
Page No 2.80:
Question 16:
Answer:
Total Drawings = Rs 30,000 (2,500 × 12)
(i) If drawings are made in the beginning of each month
(ii) If drawings are made in the middle of each month
(iii) If drawings are made in the end of each month
Page No 2.80:
Question 17:
Total Drawings = Rs 30,000 (2,500 × 12)
(i) If drawings are made in the beginning of each month
(ii) If drawings are made in the middle of each month
(iii) If drawings are made in the end of each month
Answer:
(i) If drawings are made in the beginning of each quarter
Total Drawings = Rs 48,000 (12,000 × 4)
(ii) If drawings are made at the end of each quarter
Total Drawings = Rs 48,000 (12,000 × 4)
(iii) If drawings are made in the middle of each quarter
Total Drawings = Rs 72,000 (18,000 × 4)
Page No 2.80:
Question 18:
(i) If drawings are made in the beginning of each quarter
Total Drawings = Rs 48,000 (12,000 × 4)
(ii) If drawings are made at the end of each quarter
Total Drawings = Rs 48,000 (12,000 × 4)
(iii) If drawings are made in the middle of each quarter
Total Drawings = Rs 72,000 (18,000 × 4)
Answer:
Page No 2.80:
Question 19:
Answer:
Calculation of Interest on Capital
Calculation of Interest on Drawings
Interest on A’s Drawings
Year 2014-15 |
Drawings |
× |
Period |
= |
Product |
June 30 to Mar. 31 |
500 |
× |
9 |
= |
4,500 |
July 31 to Mar. 31 |
600 |
× |
8 |
= |
4,800 |
Oct. 01 to Mar. 31 |
450 |
× |
6 |
= |
2,700 |
Mar. 01 to Mar. 31 |
1400 |
× |
1 |
= |
1,400 |
Sum of Product |
13,400 |
||||
|
|
Interest on B’s Drawings
Total Drawings = 300 ×12 = Rs 3,600
Average Period = 5.5 months
Page No 2.81:
Question 20:
Calculation of Interest on Capital
Calculation of Interest on Drawings
Interest on A’s Drawings
Year 2014-15 |
Drawings |
× |
Period |
= |
Product |
June 30 to Mar. 31 |
500 |
× |
9 |
= |
4,500 |
July 31 to Mar. 31 |
600 |
× |
8 |
= |
4,800 |
Oct. 01 to Mar. 31 |
450 |
× |
6 |
= |
2,700 |
Mar. 01 to Mar. 31 |
1400 |
× |
1 |
= |
1,400 |
Sum of Product |
13,400 |
||||
|
|
Interest on B’s Drawings
Total Drawings = 300 ×12 = Rs 3,600
Average Period = 5.5 months
Answer:
Case I:
Case II:
Note: Since date of drawings is not given, thus, interest has been calculated for an average period of 6 months.
Page No 2.81:
Question 21:
Case I:
Case II:
Note: Since date of drawings is not given, thus, interest has been calculated for an average period of 6 months.
Answer:
Note: Since p.a. word is not suffixed with the rate of interest on drawings, thus, time factor is not considered while calculating interest on drawings.
Page No 2.81:
Question 22:
Note: Since p.a. word is not suffixed with the rate of interest on drawings, thus, time factor is not considered while calculating interest on drawings.
Answer:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Salary: | Profit and Loss A/c (Net Profit) | 8,40,000 | ||
X’s Capital A/c
|
2,40,000 | (5,50,000 + 2,40,000 + 50,000 ) | ||
Y’s Capital A/c
|
50,000 | 2,90,000 | ||
Commission: | ||||
X
|
55,000 | |||
Y
|
45,000 | 1,00,000 | ||
Profit transferred to: | ||||
X’s Capital A/c
|
2,25,000 | |||
Y’s Capital A/c
|
2,25,000 | 4,50,000 | ||
8,40,000 | 8,40,000 | |||
Working Notes:
WN 1: Calculation of Commission
For X: Net Profit after charging Salaries but before charging any commission
For Y: Net Profit after charging Salaries and commission
WN 2: Calculation of Profit Share of each Partner
Net distributable profit = 8,40,000 – 2,90,000 – 1,00,000 = Rs 4,50,000
Page No 2.81:
Question 23:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Salary: | Profit and Loss A/c (Net Profit) | 8,40,000 | ||
X’s Capital A/c
|
2,40,000 | (5,50,000 + 2,40,000 + 50,000 ) | ||
Y’s Capital A/c
|
50,000 | 2,90,000 | ||
Commission: | ||||
X
|
55,000 | |||
Y
|
45,000 | 1,00,000 | ||
Profit transferred to: | ||||
X’s Capital A/c
|
2,25,000 | |||
Y’s Capital A/c
|
2,25,000 | 4,50,000 | ||
8,40,000 | 8,40,000 | |||
Working Notes:
WN 1: Calculation of Commission
For X: Net Profit after charging Salaries but before charging any commission
For Y: Net Profit after charging Salaries and commission
WN 2: Calculation of Profit Share of each Partner
Net distributable profit = 8,40,000 – 2,90,000 – 1,00,000 = Rs 4,50,000
Answer:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Interest on Capital @5%: | Profit and Loss A/c (Net Profit) | 1,04,000 | ||
X’s Capital A/c
|
6,000 | |||
Y’s Capital A/c
|
10,000 | 16,000 | ||
Salary to Z | 25,000 | |||
Commission to Z @ 5% | 3,000 | |||
Charity at 20% | 12,000 | |||
Profit transferred to: | ||||
X’s Capital A/c
|
24,000 | |||
Y’s Capital A/c
|
24,000 | 48,000 | ||
1,04,000 | 1,04,000 | |||
Working Notes:
WN 1: Calculation of Commission
Profit after Interest on Capital and Salary= 1,04,000 - 16,000 - 25,000 = Rs 63,000
WN 2: Calculation of Charity
Profit after Interest on Capital, Salary and Commission = 1,04,000 - 16,000 - 25,000 - 3,000 = Rs 60,000
WN 3: Distribution of profit among X and Y
Profit to be distributed = 1,04,000 - 16,000 - 25,000 - 3,000 - 12,000 = Rs 48,000
Share of X and Y individually = Rs 24,000 (each)
Page No 2.81:
Question 24:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Interest on Capital @5%: | Profit and Loss A/c (Net Profit) | 1,04,000 | ||
X’s Capital A/c
|
6,000 | |||
Y’s Capital A/c
|
10,000 | 16,000 | ||
Salary to Z | 25,000 | |||
Commission to Z @ 5% | 3,000 | |||
Charity at 20% | 12,000 | |||
Profit transferred to: | ||||
X’s Capital A/c
|
24,000 | |||
Y’s Capital A/c
|
24,000 | 48,000 | ||
1,04,000 | 1,04,000 | |||
Working Notes:
WN 1: Calculation of Commission
Profit after Interest on Capital and Salary= 1,04,000 - 16,000 - 25,000 = Rs 63,000
WN 2: Calculation of Charity
Profit after Interest on Capital, Salary and Commission = 1,04,000 - 16,000 - 25,000 - 3,000 = Rs 60,000
WN 3: Distribution of profit among X and Y
Profit to be distributed = 1,04,000 - 16,000 - 25,000 - 3,000 - 12,000 = Rs 48,000
Share of X and Y individually = Rs 24,000 (each)
Answer:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs. | Particulars | Amount Rs. | |||
Interest on Capital | Profit and Loss A/c (Net Profit) | 1,50,000 | ||||
A’s Capital A/c
|
15,000 | Interest on Drawings (WN 1) | ||||
B’s Capital A/c
|
12,000 |
A’s Capital A/c
|
1,950 | |||
C’s Capital A/c
|
9,000 | 36,000 |
B’s Capital A/c
|
1,800 | ||
Salary |
C’s Capital A/c
|
1,650 | 5,400 | |||
B (1,500 × 12)
|
18,000 | |||||
C (1,500 × 12)
|
18,000 | 36,000 | ||||
Commission to A | 7,500 | |||||
Transfer to Reserve (WN 2) | 7,590 | |||||
Profit transferred to: | ||||||
A’s Capital A/c
|
30,360 | |||||
B’s Capital A/c
C’s Capital A/c
|
22,770 15,180 | 68,310 | ||||
1,54,500 | 1,54,500 | |||||
Working Notes:
WN 1: Calculation of Interest on Drawings
WN 2: Calculation of Transfer to Reserve
Page No 2.81:
Question 25:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs. | Particulars | Amount Rs. | |||
Interest on Capital | Profit and Loss A/c (Net Profit) | 1,50,000 | ||||
A’s Capital A/c
|
15,000 | Interest on Drawings (WN 1) | ||||
B’s Capital A/c
|
12,000 |
A’s Capital A/c
|
1,950 | |||
C’s Capital A/c
|
9,000 | 36,000 |
B’s Capital A/c
|
1,800 | ||
Salary |
C’s Capital A/c
|
1,650 | 5,400 | |||
B (1,500 × 12)
|
18,000 | |||||
C (1,500 × 12)
|
18,000 | 36,000 | ||||
Commission to A | 7,500 | |||||
Transfer to Reserve (WN 2) | 7,590 | |||||
Profit transferred to: | ||||||
A’s Capital A/c
|
30,360 | |||||
B’s Capital A/c
C’s Capital A/c
|
22,770 15,180 | 68,310 | ||||
1,54,500 | 1,54,500 | |||||
Working Notes:
WN 1: Calculation of Interest on Drawings
WN 2: Calculation of Transfer to Reserve
Answer:
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
|||||
Dr. |
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Partners’ Commission: |
|
Profit and Loss A/c (Net Profit) |
1,80,000 |
||
A |
6,000 |
|
|
|
|
B |
9,000 |
|
|
|
|
C |
6,000 |
|
|
|
|
D |
9,000 |
30,000 |
|
|
|
Profit transferred to: |
|
|
|
||
A’s Capital A/c |
60,000 |
|
|
|
|
B’s Capital A/c |
45,000 |
|
|
|
|
C’s Capital A/c |
30,000 |
|
|
|
|
D’s Capital A/c |
15,000 |
1,50,000 |
|
|
|
|
1,80,000 |
|
1,80,000 |
||
|
|
|
|
Working Notes:
WN 1 Calculation of Partners’ Commission
Partners’ Commission = 20% on Net Profit after such commission
This commission is to be shared by the partners in the ratio of 2 : 3 : 2 : 3
WN 2 Calculation of Profit Share of each Partner
Profit available for Distribution = 1,80,000 − 30,000 = Rs 1,50,000
Profit sharing ratio = 4 : 3 : 2 : 1
Page No 2.82:
Question 26:
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
|||||
Dr. |
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Partners’ Commission: |
|
Profit and Loss A/c (Net Profit) |
1,80,000 |
||
A |
6,000 |
|
|
|
|
B |
9,000 |
|
|
|
|
C |
6,000 |
|
|
|
|
D |
9,000 |
30,000 |
|
|
|
Profit transferred to: |
|
|
|
||
A’s Capital A/c |
60,000 |
|
|
|
|
B’s Capital A/c |
45,000 |
|
|
|
|
C’s Capital A/c |
30,000 |
|
|
|
|
D’s Capital A/c |
15,000 |
1,50,000 |
|
|
|
|
1,80,000 |
|
1,80,000 |
||
|
|
|
|
Working Notes:
WN 1 Calculation of Partners’ Commission
Partners’ Commission = 20% on Net Profit after such commission
This commission is to be shared by the partners in the ratio of 2 : 3 : 2 : 3
WN 2 Calculation of Profit Share of each Partner
Profit available for Distribution = 1,80,000 − 30,000 = Rs 1,50,000
Profit sharing ratio = 4 : 3 : 2 : 1
Answer:
Amount advanced by the Partners = Rs 30,000
Profit sharing ratio = 3 : 2
Time Period (from October 01, 2015 to March 31, 2016) = 6 months
Interest rate = 6% p.a.
Calculation of Interest on Advances
Note: In the absence of a partnership agreement regarding rate of interest on loans and advances, interest is provided at 6% p.a.
Page No 2.82:
Question 27:
Amount advanced by the Partners = Rs 30,000
Profit sharing ratio = 3 : 2
Time Period (from October 01, 2015 to March 31, 2016) = 6 months
Interest rate = 6% p.a.
Calculation of Interest on Advances
Note: In the absence of a partnership agreement regarding rate of interest on loans and advances, interest is provided at 6% p.a.
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
2015 | Bank A/c | Dr. | 5,00,000 | ||
Oct. 01 |
To X’s Loan A/c
|
2,00,000 | |||
To Z’s Loan A/c
|
3,00,000 | ||||
(Loan received from X and Z) | |||||
2016 | |||||
Mar. 31 | Interest on X’s Loan A/c | Dr. | 6,000 | ||
Interest on Z’s Loan A/c | Dr. | 9,000 | |||
To X’s Loan A/c
|
6,000 | ||||
To Z’s Loan A/c
|
9,000 | ||||
(Interest on loan credited to Partner’s Loan A/c) | |||||
Mar. 31 | Profit and Loss A/c | Dr. | 15,000 | ||
To Interest on X’s Loan A/c
|
6,000 | ||||
To Interest on Z’s Loan A/c
|
9,000 | ||||
(Interest on Loan transferred to Profit and Loss A/c) | |||||
X’s Loan Account | |||||||
Dr. | Cr. | ||||||
Date | Particulars | Amount Rs | Date | Particulars | Amount Rs | ||
2016 | 2015 | ||||||
Mar.31 | Balance c/d | 2,06,000 | Oct. 01 | Bank A/c | 2,00,000 | ||
2016 | |||||||
Mar. 31 | Interest on X’s Loan A/c | 6,000 | |||||
2,06,000 | 2,06,000 | ||||||
Z’s Loan Account | |||||||
Dr. | Cr. | ||||||
Date | Particulars | Amount Rs |
Date | Particulars | Amount Rs |
||
2016 | 2015 | ||||||
Mar.31 | Balance c/d | 3,09,000 | Oct. 01 | Bank A/c | 3,00,000 | ||
2016 | |||||||
Mar. 31 | Interest on Z’s Loan A/c | 9,000 | |||||
3,09,000 | 3,09,000 | ||||||
Working Notes: Calculation of Interest on Loan
Page No 2.82:
Question 28:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
2015 | Bank A/c | Dr. | 5,00,000 | ||
Oct. 01 |
To X’s Loan A/c
|
2,00,000 | |||
To Z’s Loan A/c
|
3,00,000 | ||||
(Loan received from X and Z) | |||||
2016 | |||||
Mar. 31 | Interest on X’s Loan A/c | Dr. | 6,000 | ||
Interest on Z’s Loan A/c | Dr. | 9,000 | |||
To X’s Loan A/c
|
6,000 | ||||
To Z’s Loan A/c
|
9,000 | ||||
(Interest on loan credited to Partner’s Loan A/c) | |||||
Mar. 31 | Profit and Loss A/c | Dr. | 15,000 | ||
To Interest on X’s Loan A/c
|
6,000 | ||||
To Interest on Z’s Loan A/c
|
9,000 | ||||
(Interest on Loan transferred to Profit and Loss A/c) | |||||
X’s Loan Account | |||||||
Dr. | Cr. | ||||||
Date | Particulars | Amount Rs | Date | Particulars | Amount Rs | ||
2016 | 2015 | ||||||
Mar.31 | Balance c/d | 2,06,000 | Oct. 01 | Bank A/c | 2,00,000 | ||
2016 | |||||||
Mar. 31 | Interest on X’s Loan A/c | 6,000 | |||||
2,06,000 | 2,06,000 | ||||||
Z’s Loan Account | |||||||
Dr. | Cr. | ||||||
Date | Particulars | Amount Rs |
Date | Particulars | Amount Rs |
||
2016 | 2015 | ||||||
Mar.31 | Balance c/d | 3,09,000 | Oct. 01 | Bank A/c | 3,00,000 | ||
2016 | |||||||
Mar. 31 | Interest on Z’s Loan A/c | 9,000 | |||||
3,09,000 | 3,09,000 | ||||||
Working Notes: Calculation of Interest on Loan
Answer:
Case 1: If the profits before interest for the year amounted to Rs 3,750
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Profit transferred to: | Profit and Loss A/c | 1,050 | ||
X’s Capital A/c
|
420 | (3,750 – 2,700) | ||
Y’s Capital A/c
|
630 | 1,050 | ||
1,050 | 1,050 | |||
Case 2: If the profits before interest for the year amounted to Rs 2,250
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Profit and Loss A/c | 450 | Loss transferred to: | ||
(2,700 – 2,250) |
X’s Capital A/c
|
180 | ||
Y’s Capital A/c
|
270 | 450 | ||
450 | 450 | |||
Case 3: If the losses before interest for the year amounted to Rs 3,750
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Profit and Loss A/c | 6,450 | Loss transferred to: | ||
(3,750 + 2,700) |
X’s Capital A/c
|
2,580 | ||
Y’s Capital A/c
|
3,870 | 6,450 | ||
6,450 | 6,450 | |||
Working Notes: Calculation of Interest on Loan
Rate of interest on loan has not been provided in the question, thus, as per Indian Partnership Act, 1932 interest has been calculated @ 6% p.a.
Page No 2.82:
Question 29:
Case 1: If the profits before interest for the year amounted to Rs 3,750
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Profit transferred to: | Profit and Loss A/c | 1,050 | ||
X’s Capital A/c
|
420 | (3,750 – 2,700) | ||
Y’s Capital A/c
|
630 | 1,050 | ||
1,050 | 1,050 | |||
Case 2: If the profits before interest for the year amounted to Rs 2,250
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Profit and Loss A/c | 450 | Loss transferred to: | ||
(2,700 – 2,250) |
X’s Capital A/c
|
180 | ||
Y’s Capital A/c
|
270 | 450 | ||
450 | 450 | |||
Case 3: If the losses before interest for the year amounted to Rs 3,750
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Profit and Loss A/c | 6,450 | Loss transferred to: | ||
(3,750 + 2,700) |
X’s Capital A/c
|
2,580 | ||
Y’s Capital A/c
|
3,870 | 6,450 | ||
6,450 | 6,450 | |||
Working Notes: Calculation of Interest on Loan
Rate of interest on loan has not been provided in the question, thus, as per Indian Partnership Act, 1932 interest has been calculated @ 6% p.a.
Answer:
Journal | ||||
Particulars | L.F. | Debit Amount Rs | Credit Amount Rs |
|
Profit and Loss A/c | Dr. | 3,00,000 | ||
To Rent A/c
|
3,00,000 | |||
(Rent paid debited to Profit and Loss A/c) | ||||
Rent A/c | Dr. | 3,00,000 | ||
To A’s Capital/Current A/c
|
3,00,000 | |||
(Rent credited to A’s Capital/Current A/c) | ||||
Profit and Loss A/c | Dr. | 3,13,437 | ||
To Profit and Loss Appropriation A/c
|
3,13,437 | |||
(Profit transferred to Appropriation Account) | ||||
Profit and Loss Appropriation A/c | Dr. | 62,687 | ||
To General Reserve (WN1)
|
62,687 | |||
(General Reserve created out of Profit) | ||||
A’s Salary A/c | Dr. | 60,000 | ||
B’s Salary A/c | Dr. | 90,000 | ||
To A’s Capital/Current A/c
|
60,000 | |||
To B’s Capital/Current A/c
|
90,000 | |||
(Salary credited to Partner’s Capital/Current A/c) | ||||
Profit and Loss Appropriation A/c | Dr. | 1,67,500 | ||
To A’s Salary A/c
|
60,000 | |||
To B’s Salary A/c
|
90,000 | |||
To B’s Commission A/c
|
17,500 | |||
(Salary and Commission debited to Profit and Loss Appropriation A/c) | ||||
B’s Commission A/c | Dr. | 17,500 | ||
To B’s Capital/Current A/c
|
17,500 | |||
(Commission to B credited to his capital/current A/c) | ||||
Interest on A’s Capital A/c | Dr. | 24,000 | ||
Interest on B’s Capital A/c | Dr. | 18,000 | ||
To A’s Capital/Current A/c
|
24,000 | |||
To B’s Capital/Current A/c
|
18,000 | |||
(Interest on Capital credited to Partner’s Capital/Current A/c) | ||||
Profit and Loss Appropriation A/c | Dr. | 42,000 | ||
To Interest on A’s Capital A/c
|
24,000 | |||
To Interest on B’s Capital A/c
|
18,000 | |||
(Interest on Capital debited to Profit and Loss Appropriation A/c) | ||||
A’s Capital/Current A/c (WN2) | Dr. | 5,000 | ||
B’s Capital/Current A/c | Dr. | 6,250 | ||
To A’s Interest on Drawings A/c
|
5,000 | |||
To B’s Interest on Drawings A/c
|
6,250 | |||
(Interest on Drawings debited to Partner’s Capital/Current A/c) | ||||
Interest on A’s Drawings A/c | Dr. | 5,000 | ||
Interest on B’s Drawings A/c | Dr. | 6,250 | ||
To Profit and Loss Appropriation A/c
|
11,250 | |||
(Interest on Drawings credited to Profit and Loss Appropriation A/c) | ||||
Profit and Loss Appropriation A/c | Dr. | 52,500 | ||
To A’s Capital/Current A/c (WN3)
|
30,000 | |||
To B’s Capital/Current A/c
|
22,500 | |||
(Profit distributed between partners in their ratio) |
Profit and Loss Appropriation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Interest on Capital @ 12% | Profit and Loss A/c | 3,13,437 | ||||
A
|
24,000 | (6,13,437 - 3,00,000 ) | ||||
B
|
18,000 | 42,000 | Interest on Drawings @ 10 % | |||
A
|
5,000 | |||||
Transfer to General Reserve | 62,687 |
B
|
6,250 | 11,250 | ||
Salary: | ||||||
A
|
60,000 | |||||
B
|
90,000 | 1,50,000 | ||||
Commission to B | 17,500 | |||||
Profit transferred to: | ||||||
A’s Capital A/c
|
30,000 | |||||
B’s Capital A/c
|
22,500 | 52,500 | ||||
3,24,687 | 3,24,687 | |||||
(a) Fluctuating Capital Accounts
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | A | B | Date | Particulars | A | B | ||
2016 | 2015 | ||||||||
March 31 | Drawings A/c | 1,00,000 | 1,25,000 | April 01 | Balance b/d | 2,00,000 | 1,50,000 | ||
March 31 | Interest on Drawings A/c | 5,000 | 6,250 | 2016 | |||||
March 31 | Balance c/d | 5,09,000 | 1,66,750 | March 31 | Interest on Capital A/c | 24,000 | 18,000 | ||
March 31 | Rent | 3,00,000 | |||||||
March 31 | Salary | 60,000 | 90,000 | ||||||
March 31 | Commission | 17,500 | |||||||
March 31 | P&L Appropriation A/c | 30,000 | 22,500 | ||||||
6,14,000 | 2,98,000 | 6,14,000 | 2,98,000 | ||||||
(b) Fixed
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | A | B | Date | Particulars | A | B | ||
2016 | 2015 | ||||||||
March 31 | April 01 | Balance b/d | 2,00,000 | 1,50,000 | |||||
Balance c/d | 2,00,000 | 1,50,000 | |||||||
2,00,000 | 1,50,000 | 2,00,000 | 1,50,000 | ||||||
Partners’ Current Accounts | ||||||||||
Dr. | Cr. | |||||||||
Date | Particulars | A | B | Date | Particulars | A | B | |||
2016 | 2016 | |||||||||
March 31 | Drawings A/c | 1,00,000 | 1,25,000 | March 31 | Rent | 3,00,000 | ||||
March 31 | Interest on Drawings A/c | 5,000 | 6,250 | March 31 | Interest on Capital A/c | 24,000 | 18,000 | |||
March 31 | Balance c/d | 3,09,000 | 16,750 | March 31 | Salary | 60,000 | 90,000 | |||
March 31 | Commission | 17,500 | ||||||||
March 31 | P&L Appropriation. A/c | 30,000 | 22,500 | |||||||
4,14,000 | 1,48,000 | 4,14,000 | 1,48,000 | |||||||
Working Notes:
WN 1: Calculation of Transfer to Reserve
WN 2: Calculation of Interest on Drawings
When the date of withdrawal is not given interest on drawings is calculated for 6 months:
WN 3: Calculation of Distribution of Profits
Net Distributable Profits = 3,13,437 + 11,250 – 42,000 – 62,687 – 1,50,000 – 17,500 = Rs 52,500
Ratio between A and B is 4 : 3
Page No 2.82:
Question 30:
Journal | ||||
Particulars | L.F. | Debit Amount Rs | Credit Amount Rs |
|
Profit and Loss A/c | Dr. | 3,00,000 | ||
To Rent A/c
|
3,00,000 | |||
(Rent paid debited to Profit and Loss A/c) | ||||
Rent A/c | Dr. | 3,00,000 | ||
To A’s Capital/Current A/c
|
3,00,000 | |||
(Rent credited to A’s Capital/Current A/c) | ||||
Profit and Loss A/c | Dr. | 3,13,437 | ||
To Profit and Loss Appropriation A/c
|
3,13,437 | |||
(Profit transferred to Appropriation Account) | ||||
Profit and Loss Appropriation A/c | Dr. | 62,687 | ||
To General Reserve (WN1)
|
62,687 | |||
(General Reserve created out of Profit) | ||||
A’s Salary A/c | Dr. | 60,000 | ||
B’s Salary A/c | Dr. | 90,000 | ||
To A’s Capital/Current A/c
|
60,000 | |||
To B’s Capital/Current A/c
|
90,000 | |||
(Salary credited to Partner’s Capital/Current A/c) | ||||
Profit and Loss Appropriation A/c | Dr. | 1,67,500 | ||
To A’s Salary A/c
|
60,000 | |||
To B’s Salary A/c
|
90,000 | |||
To B’s Commission A/c
|
17,500 | |||
(Salary and Commission debited to Profit and Loss Appropriation A/c) | ||||
B’s Commission A/c | Dr. | 17,500 | ||
To B’s Capital/Current A/c
|
17,500 | |||
(Commission to B credited to his capital/current A/c) | ||||
Interest on A’s Capital A/c | Dr. | 24,000 | ||
Interest on B’s Capital A/c | Dr. | 18,000 | ||
To A’s Capital/Current A/c
|
24,000 | |||
To B’s Capital/Current A/c
|
18,000 | |||
(Interest on Capital credited to Partner’s Capital/Current A/c) | ||||
Profit and Loss Appropriation A/c | Dr. | 42,000 | ||
To Interest on A’s Capital A/c
|
24,000 | |||
To Interest on B’s Capital A/c
|
18,000 | |||
(Interest on Capital debited to Profit and Loss Appropriation A/c) | ||||
A’s Capital/Current A/c (WN2) | Dr. | 5,000 | ||
B’s Capital/Current A/c | Dr. | 6,250 | ||
To A’s Interest on Drawings A/c
|
5,000 | |||
To B’s Interest on Drawings A/c
|
6,250 | |||
(Interest on Drawings debited to Partner’s Capital/Current A/c) | ||||
Interest on A’s Drawings A/c | Dr. | 5,000 | ||
Interest on B’s Drawings A/c | Dr. | 6,250 | ||
To Profit and Loss Appropriation A/c
|
11,250 | |||
(Interest on Drawings credited to Profit and Loss Appropriation A/c) | ||||
Profit and Loss Appropriation A/c | Dr. | 52,500 | ||
To A’s Capital/Current A/c (WN3)
|
30,000 | |||
To B’s Capital/Current A/c
|
22,500 | |||
(Profit distributed between partners in their ratio) |
Profit and Loss Appropriation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Interest on Capital @ 12% | Profit and Loss A/c | 3,13,437 | ||||
A
|
24,000 | (6,13,437 - 3,00,000 ) | ||||
B
|
18,000 | 42,000 | Interest on Drawings @ 10 % | |||
A
|
5,000 | |||||
Transfer to General Reserve | 62,687 |
B
|
6,250 | 11,250 | ||
Salary: | ||||||
A
|
60,000 | |||||
B
|
90,000 | 1,50,000 | ||||
Commission to B | 17,500 | |||||
Profit transferred to: | ||||||
A’s Capital A/c
|
30,000 | |||||
B’s Capital A/c
|
22,500 | 52,500 | ||||
3,24,687 | 3,24,687 | |||||
(a) Fluctuating Capital Accounts
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | A | B | Date | Particulars | A | B | ||
2016 | 2015 | ||||||||
March 31 | Drawings A/c | 1,00,000 | 1,25,000 | April 01 | Balance b/d | 2,00,000 | 1,50,000 | ||
March 31 | Interest on Drawings A/c | 5,000 | 6,250 | 2016 | |||||
March 31 | Balance c/d | 5,09,000 | 1,66,750 | March 31 | Interest on Capital A/c | 24,000 | 18,000 | ||
March 31 | Rent | 3,00,000 | |||||||
March 31 | Salary | 60,000 | 90,000 | ||||||
March 31 | Commission | 17,500 | |||||||
March 31 | P&L Appropriation A/c | 30,000 | 22,500 | ||||||
6,14,000 | 2,98,000 | 6,14,000 | 2,98,000 | ||||||
(b) Fixed
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | A | B | Date | Particulars | A | B | ||
2016 | 2015 | ||||||||
March 31 | April 01 | Balance b/d | 2,00,000 | 1,50,000 | |||||
Balance c/d | 2,00,000 | 1,50,000 | |||||||
2,00,000 | 1,50,000 | 2,00,000 | 1,50,000 | ||||||
Partners’ Current Accounts | ||||||||||
Dr. | Cr. | |||||||||
Date | Particulars | A | B | Date | Particulars | A | B | |||
2016 | 2016 | |||||||||
March 31 | Drawings A/c | 1,00,000 | 1,25,000 | March 31 | Rent | 3,00,000 | ||||
March 31 | Interest on Drawings A/c | 5,000 | 6,250 | March 31 | Interest on Capital A/c | 24,000 | 18,000 | |||
March 31 | Balance c/d | 3,09,000 | 16,750 | March 31 | Salary | 60,000 | 90,000 | |||
March 31 | Commission | 17,500 | ||||||||
March 31 | P&L Appropriation. A/c | 30,000 | 22,500 | |||||||
4,14,000 | 1,48,000 | 4,14,000 | 1,48,000 | |||||||
Working Notes:
WN 1: Calculation of Transfer to Reserve
WN 2: Calculation of Interest on Drawings
When the date of withdrawal is not given interest on drawings is calculated for 6 months:
WN 3: Calculation of Distribution of Profits
Net Distributable Profits = 3,13,437 + 11,250 – 42,000 – 62,687 – 1,50,000 – 17,500 = Rs 52,500
Ratio between A and B is 4 : 3
Answer:
Profit and Loss Appropriation Account |
|||||
Dr. |
|
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Interest on Capital: |
|
Profit and Loss A/c (Net Profit after Z’s salary) |
4,00,000 |
||
X |
50,000 |
|
|
|
|
Y |
50,000 |
|
|
|
|
Z |
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 Rs 4,00,000 is given after adjusting the Z’s salary.
WN 2 Calculation of Interest on Capital
WN 3 Calculation of Profit Share of each Partner
Divisible of Profit after Interest on Capital = Rs 4,00,000 − Rs 1,25,000 = Rs 2,75,000
Profit sharing ratio = 2 : 2 : 1
Page No 2.82:
Question 31:
Profit and Loss Appropriation Account |
|||||
Dr. |
|
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Interest on Capital: |
|
Profit and Loss A/c (Net Profit after Z’s salary) |
4,00,000 |
||
X |
50,000 |
|
|
|
|
Y |
50,000 |
|
|
|
|
Z |
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 Rs 4,00,000 is given after adjusting the Z’s salary.
WN 2 Calculation of Interest on Capital
WN 3 Calculation of Profit Share of each Partner
Divisible of Profit after Interest on Capital = Rs 4,00,000 − Rs 1,25,000 = Rs 2,75,000
Profit sharing ratio = 2 : 2 : 1
Answer:
Profit and Loss Appropriation Account
for the year ended 31st March, 2015
|
|||||
Dr. | Cr. | ||||
Particulars | Amount Rs | Particulars | Amount Rs | ||
Interest on Capital (WN3) | Profit and Loss A/c | 5,97,600 | |||
X
|
22,000 | (6,00,000 - 2,400) | |||
Y
|
17,500 | Interest on Drawings (WN2) | |||
Z
|
9,000 | 48,500 |
X
|
6,600 | |
Salary to: |
Y
|
4,400 | |||
Y
|
40,000 |
Z
|
4,400 | 15,400 | |
Z
|
60,000 | 1,00,000 | |||
Profit transferred to: | |||||
X’s Capital A/c
|
1,85,800 | ||||
Y’s Capital A/c
|
1,85,800 | ||||
Z’s Capital A/c
|
92,900 | 4,64,500 | |||
6,13,000 | 6,13,000 | ||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | ||
2014 | 2014 | ||||||||||
Oct. 01 | Bank A/c | 20,000 | Apr. 01 | Balance b/d | 2,00,000 | 1,60,000 | 1,00,000 | ||||
2015 | Oct. 01 | Bank A/c | 40,000 | 30,000 | |||||||
Mar. 31 | Balance c/d | 2,40,000 | 1,90,000 | 80,000 | |||||||
2,40,000 | 1,90,000 | 1,00,000 | 2,40,000 | 1,90,000 | 1,00,000 | ||||||
Partners’ Current Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | ||
2014 | 2014 | ||||||||||
Apr. 01 | Balance b/d | 8,000 | Apr. 01 | Balance b/d | 20,000 | 10,000 | |||||
2015 | 2015 | ||||||||||
Mar. 31 | Drawings A/c | 1,44,000 | 96,000 | 96,000 | Mar. 31 | Interest on Capital A/c | 22,000 | 17,500 | 9,000 | ||
Mar. 31 | Interest on Drawings A/c | 6,600 | 4,400 | 4,400 | Mar. 31 | Salary A/c | 40,000 | 60,000 | |||
Mar. 31 | Balance c/d | 77,200 | 1,34,900 | 71,500 | Mar. 31 | P&L Appropriation A/c | 1,85,800 | 1,85,800 | 92,900 | ||
2,27,300 | 2,43,300 | 1,71,900 | 2,27,800 | 2,43,300 | 1,71,900 | ||||||
Working Notes:
WN 1: Calculation of Interest on Loan
Interest on Loan is a charge against profit therefore net profit after deducting interest on loan amount is shown in Profit and Loss Appropriation Account. Also, Interest on Loan is to be shown in Partners’ Loan Account and hence it is not credited to Partners’ Current Account.
WN 2: Calculation of Interest on Drawings (at the end of each month)
WN 3: Calculation of Interest on Capital
Interest (1st April – 1st Oct.) | Interest (1st Oct. – 31st March) | Total |
22,000 | ||
17,500 | ||
9,000 |
Page No 2.83:
Question 32:
Profit and Loss Appropriation Account
for the year ended 31st March, 2015
|
|||||
Dr. | Cr. | ||||
Particulars | Amount Rs | Particulars | Amount Rs | ||
Interest on Capital (WN3) | Profit and Loss A/c | 5,97,600 | |||
X
|
22,000 | (6,00,000 - 2,400) | |||
Y
|
17,500 | Interest on Drawings (WN2) | |||
Z
|
9,000 | 48,500 |
X
|
6,600 | |
Salary to: |
Y
|
4,400 | |||
Y
|
40,000 |
Z
|
4,400 | 15,400 | |
Z
|
60,000 | 1,00,000 | |||
Profit transferred to: | |||||
X’s Capital A/c
|
1,85,800 | ||||
Y’s Capital A/c
|
1,85,800 | ||||
Z’s Capital A/c
|
92,900 | 4,64,500 | |||
6,13,000 | 6,13,000 | ||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | ||
2014 | 2014 | ||||||||||
Oct. 01 | Bank A/c | 20,000 | Apr. 01 | Balance b/d | 2,00,000 | 1,60,000 | 1,00,000 | ||||
2015 | Oct. 01 | Bank A/c | 40,000 | 30,000 | |||||||
Mar. 31 | Balance c/d | 2,40,000 | 1,90,000 | 80,000 | |||||||
2,40,000 | 1,90,000 | 1,00,000 | 2,40,000 | 1,90,000 | 1,00,000 | ||||||
Partners’ Current Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | ||
2014 | 2014 | ||||||||||
Apr. 01 | Balance b/d | 8,000 | Apr. 01 | Balance b/d | 20,000 | 10,000 | |||||
2015 | 2015 | ||||||||||
Mar. 31 | Drawings A/c | 1,44,000 | 96,000 | 96,000 | Mar. 31 | Interest on Capital A/c | 22,000 | 17,500 | 9,000 | ||
Mar. 31 | Interest on Drawings A/c | 6,600 | 4,400 | 4,400 | Mar. 31 | Salary A/c | 40,000 | 60,000 | |||
Mar. 31 | Balance c/d | 77,200 | 1,34,900 | 71,500 | Mar. 31 | P&L Appropriation A/c | 1,85,800 | 1,85,800 | 92,900 | ||
2,27,300 | 2,43,300 | 1,71,900 | 2,27,800 | 2,43,300 | 1,71,900 | ||||||
Working Notes:
WN 1: Calculation of Interest on Loan
Interest on Loan is a charge against profit therefore net profit after deducting interest on loan amount is shown in Profit and Loss Appropriation Account. Also, Interest on Loan is to be shown in Partners’ Loan Account and hence it is not credited to Partners’ Current Account.
WN 2: Calculation of Interest on Drawings (at the end of each month)
WN 3: Calculation of Interest on Capital
Interest (1st April – 1st Oct.) | Interest (1st Oct. – 31st March) | Total |
22,000 | ||
17,500 | ||
9,000 |
Answer:
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
Sohan Rs |
Mohan Rs |
Particulars |
Sohan Rs |
Mohan Rs |
|
Drawings A/c |
50,000 |
30,000 |
Balance b/d |
4,00,000 |
3,00,000 |
|
Interest on Drawings A/c |
1,250 |
750 |
Interest on Capital A/c |
20,000 |
15,000 |
|
|
|
|
P/L Appropriation A/c |
60,000 |
50,000 |
|
Balance c/d |
4,69,750 |
3,37,250 |
Partners’ Salary |
36,000 |
- |
|
|
|
|
Commission |
5,000 |
3,000 |
|
|
5,21,000 |
3,68,000 |
|
5,21,000 |
3,68,000 |
|
|
|
|
|
|
|
Working Note:
Calculation of Interest on Capital
Page No 2.83:
Question 33:
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
Sohan Rs |
Mohan Rs |
Particulars |
Sohan Rs |
Mohan Rs |
|
Drawings A/c |
50,000 |
30,000 |
Balance b/d |
4,00,000 |
3,00,000 |
|
Interest on Drawings A/c |
1,250 |
750 |
Interest on Capital A/c |
20,000 |
15,000 |
|
|
|
|
P/L Appropriation A/c |
60,000 |
50,000 |
|
Balance c/d |
4,69,750 |
3,37,250 |
Partners’ Salary |
36,000 |
- |
|
|
|
|
Commission |
5,000 |
3,000 |
|
|
5,21,000 |
3,68,000 |
|
5,21,000 |
3,68,000 |
|
|
|
|
|
|
|
Working Note:
Calculation of Interest on Capital
Answer:
Profit and Loss Adjustment Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Interest on Kajal’s loan@ 6% p.a. |
1,800 |
Profit |
70,260 |
Profit transferred to P/L Appropriation A/c |
68,460 |
|
|
|
|
|
|
|
70,260 |
|
70,260 |
|
|
|
|
Profit and Loss Appropriation Account |
||||||
Dr. |
|
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Interest on Capital A/c: |
|
Profit and Loss A/c |
68,460 |
|||
Sajal |
2,500 |
|
|
|
||
Kajal |
2,000 |
4,500 |
Interest on Drawings A/c: |
|
||
|
|
Sajal |
300 |
|
||
Reserve |
6,450 |
Kajal |
240 |
540 |
||
Profit transferred to: |
|
|
|
|||
Sajal’s Capital A/c |
38,700 |
|
|
|
||
Kajal’s Capital A/c |
19,350 |
58,050 |
|
|
||
|
69,000 |
|
69,000 |
|||
|
|
|
|
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
Sajal |
Kajal |
Particulars |
Sajal |
Kajal |
|
Drawings A/c |
10,000 |
8,000 |
Balance b/d |
50,000 |
40,000 |
|
Interest on Drawings A/c |
300 |
240 |
Interest on Capital A/c |
2,500 |
2,000 |
|
|
|
|
P/L Appropriation A/c |
38,700 |
19,350 |
|
Balance c/d |
80,900 |
53,110 |
|
|
|
|
|
91,200 |
61,350 |
|
91,200 |
61,350 |
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Interest on Drawings
WN 3 Calculation of Amount to be transferred to Reserve
Amount for Reserve = 10% of Divisible Profit
Divisible Profit = Profit + Interest on Drawings − Interest on Capital
= 68,460 + 540 − 4,500 = Rs 64,500
WN 4 Calculation of Profit Share of each Partner
Profit available for Distribution = 68,460 + 540 − 4,500 − 6,450 = Rs 58,050
Profit sharing ratio = 2 : 1
Page No 2.83:
Question 34:
Profit and Loss Adjustment Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Interest on Kajal’s loan@ 6% p.a. |
1,800 |
Profit |
70,260 |
Profit transferred to P/L Appropriation A/c |
68,460 |
|
|
|
|
|
|
|
70,260 |
|
70,260 |
|
|
|
|
Profit and Loss Appropriation Account |
||||||
Dr. |
|
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Interest on Capital A/c: |
|
Profit and Loss A/c |
68,460 |
|||
Sajal |
2,500 |
|
|
|
||
Kajal |
2,000 |
4,500 |
Interest on Drawings A/c: |
|
||
|
|
Sajal |
300 |
|
||
Reserve |
6,450 |
Kajal |
240 |
540 |
||
Profit transferred to: |
|
|
|
|||
Sajal’s Capital A/c |
38,700 |
|
|
|
||
Kajal’s Capital A/c |
19,350 |
58,050 |
|
|
||
|
69,000 |
|
69,000 |
|||
|
|
|
|
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
Sajal |
Kajal |
Particulars |
Sajal |
Kajal |
|
Drawings A/c |
10,000 |
8,000 |
Balance b/d |
50,000 |
40,000 |
|
Interest on Drawings A/c |
300 |
240 |
Interest on Capital A/c |
2,500 |
2,000 |
|
|
|
|
P/L Appropriation A/c |
38,700 |
19,350 |
|
Balance c/d |
80,900 |
53,110 |
|
|
|
|
|
91,200 |
61,350 |
|
91,200 |
61,350 |
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Interest on Drawings
WN 3 Calculation of Amount to be transferred to Reserve
Amount for Reserve = 10% of Divisible Profit
Divisible Profit = Profit + Interest on Drawings − Interest on Capital
= 68,460 + 540 − 4,500 = Rs 64,500
WN 4 Calculation of Profit Share of each Partner
Profit available for Distribution = 68,460 + 540 − 4,500 − 6,450 = Rs 58,050
Profit sharing ratio = 2 : 1
Answer:
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
||||||
Dr. |
|
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Interest on Capital A/c: |
|
Profit and Loss A/c (Net Profit) |
55,000 |
|||
Kalu |
2,500 |
|
|
|
||
Lalu |
1,500 |
4,000 |
Interest on Drawings A/c: |
|
||
Partners’ Salaries |
|
Kalu |
87.50 |
|
||
Kalu (Rs 500 × 12) |
6,000 |
|
Lalu |
60.00 |
147.50 |
|
Lalu (Rs 400 × 12) |
4,800 |
10,800 |
|
|
|
|
Profit transferred to: |
|
|
|
|||
Kalu’s Capital A/c |
24,208.50 |
|
|
|
||
Lalu’s Capital A/c |
16,139.00 |
40,347.50 |
|
|
||
|
55,147.50 |
|
55,147.50 |
|||
|
|
|
|
Partners’ Capital Accounts |
|||||
Cr. |
|
|
|
|
Dr. |
Particulars |
Kalu Rs |
Lalu |
Particulars |
Kalu Rs |
Lalu |
Drawings A/c |
3,500 |
2,400 |
Balance b/d |
50,000 |
30,000 |
Interest on Drawings A/c |
87.50 |
60 |
Interest on Capital A/c |
2,500 |
1,500 |
|
|
|
Partners’ Salary A/c |
6,000 |
4,800 |
Balance c/d |
79,121 |
49,979 |
P/L Appropriation A/c |
24,208.50 |
16,139 |
|
82,708.50 |
52,439 |
|
82,708.50 |
52,439 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Interest on Drawings
WN 3 Calculation of Profit Share of each Partner
Profit available for Distribution = 55,000 + 147.50 − 4,000 − 10,800 = Rs 40,347.50
Profit sharing ratio = 3 : 2
Page No 2.83:
Question 35:
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
||||||
Dr. |
|
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Interest on Capital A/c: |
|
Profit and Loss A/c (Net Profit) |
55,000 |
|||
Kalu |
2,500 |
|
|
|
||
Lalu |
1,500 |
4,000 |
Interest on Drawings A/c: |
|
||
Partners’ Salaries |
|
Kalu |
87.50 |
|
||
Kalu (Rs 500 × 12) |
6,000 |
|
Lalu |
60.00 |
147.50 |
|
Lalu (Rs 400 × 12) |
4,800 |
10,800 |
|
|
|
|
Profit transferred to: |
|
|
|
|||
Kalu’s Capital A/c |
24,208.50 |
|
|
|
||
Lalu’s Capital A/c |
16,139.00 |
40,347.50 |
|
|
||
|
55,147.50 |
|
55,147.50 |
|||
|
|
|
|
Partners’ Capital Accounts |
|||||
Cr. |
|
|
|
|
Dr. |
Particulars |
Kalu Rs |
Lalu |
Particulars |
Kalu Rs |
Lalu |
Drawings A/c |
3,500 |
2,400 |
Balance b/d |
50,000 |
30,000 |
Interest on Drawings A/c |
87.50 |
60 |
Interest on Capital A/c |
2,500 |
1,500 |
|
|
|
Partners’ Salary A/c |
6,000 |
4,800 |
Balance c/d |
79,121 |
49,979 |
P/L Appropriation A/c |
24,208.50 |
16,139 |
|
82,708.50 |
52,439 |
|
82,708.50 |
52,439 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Interest on Drawings
WN 3 Calculation of Profit Share of each Partner
Profit available for Distribution = 55,000 + 147.50 − 4,000 − 10,800 = Rs 40,347.50
Profit sharing ratio = 3 : 2
Answer:
Profit and Loss Appropriation Account for the year ended March 31, 2015 |
|||||
Dr. | Cr. | ||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Interest on Capital: |
|
Profit (after Salary) |
21,000 |
||
P |
2,000 |
|
|
|
|
Q |
1,500 |
|
|
|
|
R |
1,500 |
5,000 |
|
|
|
Profit transferred to: |
|
|
|
||
P’s Capital A/c |
7,000 |
|
|
|
|
Q’s Capital A/c |
5,000 |
|
|
|
|
R’s Capital A/c |
4,000 |
16,000 |
|
|
|
|
21,000 |
|
21,000 |
||
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
P |
Q |
R |
Particulars |
P |
Q |
R |
Drawings A/c |
10,000 |
10,000 |
10,000 |
Balance b/d |
40,000 |
30,000 |
30,000 |
|
|
|
|
Salaries A/c |
- |
6,000 |
4,000 |
|
|
|
|
Interest Capital A/c |
2,000 |
1,500 |
1,500 |
Balance c/d |
39,000 |
32,500 |
29,500 |
P/L Appropriation A/c |
7,000 |
5,000 |
4,000 |
|
49,000 |
32,500 |
29,500 |
|
49,000 |
42,500 |
39,500 |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Profit Share of each Partner
Profit available for distribution = 21,000 − 5000 = Rs 16,000
- Distribution of first Rs 10,000 (50%, 30% and 20%)
- Distribution of Remaining Profit i.e. Rs 6,000 (16,000 − 10,000) equally
Therefore,
Page No 2.84:
Question 36:
Profit and Loss Appropriation Account for the year ended March 31, 2015 |
|||||
Dr. | Cr. | ||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Interest on Capital: |
|
Profit (after Salary) |
21,000 |
||
P |
2,000 |
|
|
|
|
Q |
1,500 |
|
|
|
|
R |
1,500 |
5,000 |
|
|
|
Profit transferred to: |
|
|
|
||
P’s Capital A/c |
7,000 |
|
|
|
|
Q’s Capital A/c |
5,000 |
|
|
|
|
R’s Capital A/c |
4,000 |
16,000 |
|
|
|
|
21,000 |
|
21,000 |
||
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
P |
Q |
R |
Particulars |
P |
Q |
R |
Drawings A/c |
10,000 |
10,000 |
10,000 |
Balance b/d |
40,000 |
30,000 |
30,000 |
|
|
|
|
Salaries A/c |
- |
6,000 |
4,000 |
|
|
|
|
Interest Capital A/c |
2,000 |
1,500 |
1,500 |
Balance c/d |
39,000 |
32,500 |
29,500 |
P/L Appropriation A/c |
7,000 |
5,000 |
4,000 |
|
49,000 |
32,500 |
29,500 |
|
49,000 |
42,500 |
39,500 |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Profit Share of each Partner
Profit available for distribution = 21,000 − 5000 = Rs 16,000
- Distribution of first Rs 10,000 (50%, 30% and 20%)
- Distribution of Remaining Profit i.e. Rs 6,000 (16,000 − 10,000) equally
Therefore,
Answer:
Profit and Loss Appropriation Account
for the year ended 31st March, 2015
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Interest on Capital (WN1) | Profit and Loss A/c (Net Profit) | 44,490 | ||||
P
|
1,800 | Interest on Drawings (WN2) | ||||
Q
|
2,340 |
Q
|
68 | |||
R
|
1,460 | 5,600 |
R
|
132 | 200 | |
Salary to P | 12,000 | |||||
Commission to R | 1,290 | |||||
Profit transferred to: | ||||||
P’s Capital A/c
|
12,900 | |||||
Q’s Capital A/c
|
7,740 | |||||
R’s Capital A/c
|
5,160 | 25,800 | ||||
44,690 | 44,690 | |||||
WN 1: Calculation of Interest on Capital
Total Interest on Capital = 1,800 + 540 = Rs 2,340
WN 2: Calculation of Interest on Drawings
Year (2014) | Drawings | × | Period | = | Product |
Aug. 01 | 1,000 | × | 8 | = | 8,000 |
Nov. 30 | 1,400 | × | 4 | = | 5,600 |
Sum of Product | 13,600 | ||||
WN 3: Calculation of Commission to R
Profit after interest on drawings and capital and salary = 44,490 - 5,600 - 12,000 + 200 = Rs 27,090
Page No 2.84:
Question 37:
Profit and Loss Appropriation Account
for the year ended 31st March, 2015
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Interest on Capital (WN1) | Profit and Loss A/c (Net Profit) | 44,490 | ||||
P
|
1,800 | Interest on Drawings (WN2) | ||||
Q
|
2,340 |
Q
|
68 | |||
R
|
1,460 | 5,600 |
R
|
132 | 200 | |
Salary to P | 12,000 | |||||
Commission to R | 1,290 | |||||
Profit transferred to: | ||||||
P’s Capital A/c
|
12,900 | |||||
Q’s Capital A/c
|
7,740 | |||||
R’s Capital A/c
|
5,160 | 25,800 | ||||
44,690 | 44,690 | |||||
WN 1: Calculation of Interest on Capital
Total Interest on Capital = 1,800 + 540 = Rs 2,340
WN 2: Calculation of Interest on Drawings
Year (2014) | Drawings | × | Period | = | Product |
Aug. 01 | 1,000 | × | 8 | = | 8,000 |
Nov. 30 | 1,400 | × | 4 | = | 5,600 |
Sum of Product | 13,600 | ||||
WN 3: Calculation of Commission to R
Profit after interest on drawings and capital and salary = 44,490 - 5,600 - 12,000 + 200 = Rs 27,090
Answer:
Profit and Loss Appropriation Account for the year ended March 31, 2015 |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Interest on Capital: |
|
Profit and Loss A/c (Net Profit) |
1,50,000 |
|
A |
9,000 |
|
|
|
B |
5,400 |
14,400 |
|
|
B’s Salary |
18,000 |
|
|
|
Partner’s Commission |
|
|
|
|
A |
18,000 |
|
|
|
B |
4,743 |
22,743 |
|
|
Profit transferred to: |
|
|
|
|
A’s Capital A/c |
71,143 |
|
|
|
B’s Capital A/c |
23,714 |
94,857 |
|
|
|
50,000 |
|
1,50,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||
Dr. |
|
|
|
|
Cr. |
Particulars |
A |
B |
Particulars |
A |
B |
Drawings A/c |
24,000 |
18,000 |
Balance b/d |
1,50,000 |
90,000 |
|
|
|
Interest on Capital A/c |
9,000 |
5,400 |
|
|
|
Commission A/c |
18,000 |
4,743 |
|
|
|
Salary A/c |
|
18,000 |
Balance c/d |
2,24,143 |
1,23,857 |
P/L Appropriation A/c |
71,143 |
23,714 |
|
2,48,143 |
1,41,857 |
|
2,48,143 |
1,41,857 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Commission to Partners
Commission to B = 5% on Profits after all Expense including such Commission
Profits after all expense = 1,50,000 − 14,400 − 18,000 − 18,000 = Rs 99,600
WN 3 Calculation of Profit Share of each Partner
Profit available for Distribution = 1,50,000 − 14,400 − 18,000 −18,000 − 4,743 = Rs 94,857
Profit sharing ratio = 3 : 1
Page No 2.84:
Question 38:
Profit and Loss Appropriation Account for the year ended March 31, 2015 |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Interest on Capital: |
|
Profit and Loss A/c (Net Profit) |
1,50,000 |
|
A |
9,000 |
|
|
|
B |
5,400 |
14,400 |
|
|
B’s Salary |
18,000 |
|
|
|
Partner’s Commission |
|
|
|
|
A |
18,000 |
|
|
|
B |
4,743 |
22,743 |
|
|
Profit transferred to: |
|
|
|
|
A’s Capital A/c |
71,143 |
|
|
|
B’s Capital A/c |
23,714 |
94,857 |
|
|
|
50,000 |
|
1,50,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||
Dr. |
|
|
|
|
Cr. |
Particulars |
A |
B |
Particulars |
A |
B |
Drawings A/c |
24,000 |
18,000 |
Balance b/d |
1,50,000 |
90,000 |
|
|
|
Interest on Capital A/c |
9,000 |
5,400 |
|
|
|
Commission A/c |
18,000 |
4,743 |
|
|
|
Salary A/c |
|
18,000 |
Balance c/d |
2,24,143 |
1,23,857 |
P/L Appropriation A/c |
71,143 |
23,714 |
|
2,48,143 |
1,41,857 |
|
2,48,143 |
1,41,857 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Commission to Partners
Commission to B = 5% on Profits after all Expense including such Commission
Profits after all expense = 1,50,000 − 14,400 − 18,000 − 18,000 = Rs 99,600
WN 3 Calculation of Profit Share of each Partner
Profit available for Distribution = 1,50,000 − 14,400 − 18,000 −18,000 − 4,743 = Rs 94,857
Profit sharing ratio = 3 : 1
Answer:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Interest on Capital @ 8% | Profit and Loss A/c (Net Profit) | 3,77,500 | ||||
X
|
20,000 | |||||
Y
|
16,000 | Interest on Drawings (WN1) | ||||
Z
|
14,000 | 50,000 |
X
|
4,200 | ||
Salary |
Y
|
3,600 | ||||
Y
|
15,000 |
Z
|
3,000 | 10,800 | ||
Z
|
22,500 | 37,500 | ||||
Transfer to Reserve | 1,00,000 | |||||
Commission to X | 18,255 | |||||
Profit transferred to: | ||||||
X’s Capital A/c
|
60,848 | |||||
Y’s Capital A/c
|
60,848 | |||||
Z’s Capital A/c
|
60,849 | 1,82,545 | ||||
3,88,300 | 3,88,300 | |||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z |
2016 | 2015 | ||||||||
March 31 | Drawings A/c | 42,000 | 36,000 | 30,000 | April 01 | Balance b/d | 2,50,000 | 2,00,000 | 1,75,000 |
March 31 | Interest on Drawings A/c | 4,200 | 3,600 | 3,000 | 2016 | ||||
March 31 | Balance c/d | 3,02,903 | 2,52,248 | 2,39,349 | March 31 | Interest on Capital A/c | 20,000 | 16,000 | 14,000 |
March 31 | Salary A/c | 15,000 | 22,500 | ||||||
March 31 | Commission A/c | 18,255 | |||||||
March 31 | P&L App. A/c | 60,848 | 60,848 | 60,849 | |||||
3,49,103 | 2,91,848 | 2,72,349 | 3,49,103 | 2,91,848 | 2,72,349 | ||||
Working Notes:
WN 1: Calculation of Interest on Drawings
Interest on Drawings is calculated without considering Time factor as the rate of interest given in the question doesn’t include the word “per annum”.
WN 2: Calculation of Commission to X
Net Distributable Profit = 3,88,300 – 50,000 – 37,500 – 1,00,000 = Rs 2,00,800
Page No 2.84:
Question 39:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Interest on Capital @ 8% | Profit and Loss A/c (Net Profit) | 3,77,500 | ||||
X
|
20,000 | |||||
Y
|
16,000 | Interest on Drawings (WN1) | ||||
Z
|
14,000 | 50,000 |
X
|
4,200 | ||
Salary |
Y
|
3,600 | ||||
Y
|
15,000 |
Z
|
3,000 | 10,800 | ||
Z
|
22,500 | 37,500 | ||||
Transfer to Reserve | 1,00,000 | |||||
Commission to X | 18,255 | |||||
Profit transferred to: | ||||||
X’s Capital A/c
|
60,848 | |||||
Y’s Capital A/c
|
60,848 | |||||
Z’s Capital A/c
|
60,849 | 1,82,545 | ||||
3,88,300 | 3,88,300 | |||||
Partners’ Capital Accounts | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z |
2016 | 2015 | ||||||||
March 31 | Drawings A/c | 42,000 | 36,000 | 30,000 | April 01 | Balance b/d | 2,50,000 | 2,00,000 | 1,75,000 |
March 31 | Interest on Drawings A/c | 4,200 | 3,600 | 3,000 | 2016 | ||||
March 31 | Balance c/d | 3,02,903 | 2,52,248 | 2,39,349 | March 31 | Interest on Capital A/c | 20,000 | 16,000 | 14,000 |
March 31 | Salary A/c | 15,000 | 22,500 | ||||||
March 31 | Commission A/c | 18,255 | |||||||
March 31 | P&L App. A/c | 60,848 | 60,848 | 60,849 | |||||
3,49,103 | 2,91,848 | 2,72,349 | 3,49,103 | 2,91,848 | 2,72,349 | ||||
Working Notes:
WN 1: Calculation of Interest on Drawings
Interest on Drawings is calculated without considering Time factor as the rate of interest given in the question doesn’t include the word “per annum”.
WN 2: Calculation of Commission to X
Net Distributable Profit = 3,88,300 – 50,000 – 37,500 – 1,00,000 = Rs 2,00,800
Answer:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Interest on Capital @ 15% | Profit and Loss A/c (Net Profit) | 3,04,200 | ||||
A
|
60,000 | |||||
B
|
45,000 | Interest on Advances (WN1) | ||||
C
|
30,000 | 1,35,000 |
A
|
3,600 | ||
B
|
6,300 | |||||
C
|
900 | 10,800 | ||||
Profit transferred to: | ||||||
A’s Capital A/c
|
80,000 | |||||
B’s Capital A/c
|
60,000 | |||||
C’s Capital A/c
|
40,000 | 1,80,000 | ||||
3,15,000 | 3,15,000 | |||||
Partners’ Capital Accounts | |||||||
Dr. | Cr. | ||||||
Particulars | A | B | C | Particulars | A | B | C |
Balance b/d | 4,00,000 | 3,00,000 | 2,00,000 | ||||
Balance c/d | 4,00,000 | 3,00,000 | 2,00,000 | ||||
4,00,000 | 3,00,000 | 2,00,000 | 4,00,000 | 3,00,000 | 2,00,000 | ||
Partners’ Current Accounts | |||||||
Dr. | Cr. | ||||||
Particulars | A | B | C | Particulars | A | B | C |
Drawings A/c | 70,000 | 95,000 | 30,000 | Balance b/d | 11,520 | 18,640 | 5,760 |
Interest on Advances A/c | 3,600 | 6,300 | 900 | Int. on Cap. A/c | 60,000 | 45,000 | 30,000 |
P&L App. A/c | 80,000 | 60,000 | 40,000 | ||||
Balance c/d | 77,920 | 22,340 | 44,860 | ||||
1,51,520 | 1,23,640 | 75,760 | 1,51,520 | 1,23,640 | 75,760 | ||
Working Notes: Calculation of Interest on Advances
Note: Interest on advances is calculated for an average period of six months because date of withdrawal is not given.
Page No 2.85:
Question 40:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Interest on Capital @ 15% | Profit and Loss A/c (Net Profit) | 3,04,200 | ||||
A
|
60,000 | |||||
B
|
45,000 | Interest on Advances (WN1) | ||||
C
|
30,000 | 1,35,000 |
A
|
3,600 | ||
B
|
6,300 | |||||
C
|
900 | 10,800 | ||||
Profit transferred to: | ||||||
A’s Capital A/c
|
80,000 | |||||
B’s Capital A/c
|
60,000 | |||||
C’s Capital A/c
|
40,000 | 1,80,000 | ||||
3,15,000 | 3,15,000 | |||||
Partners’ Capital Accounts | |||||||
Dr. | Cr. | ||||||
Particulars | A | B | C | Particulars | A | B | C |
Balance b/d | 4,00,000 | 3,00,000 | 2,00,000 | ||||
Balance c/d | 4,00,000 | 3,00,000 | 2,00,000 | ||||
4,00,000 | 3,00,000 | 2,00,000 | 4,00,000 | 3,00,000 | 2,00,000 | ||
Partners’ Current Accounts | |||||||
Dr. | Cr. | ||||||
Particulars | A | B | C | Particulars | A | B | C |
Drawings A/c | 70,000 | 95,000 | 30,000 | Balance b/d | 11,520 | 18,640 | 5,760 |
Interest on Advances A/c | 3,600 | 6,300 | 900 | Int. on Cap. A/c | 60,000 | 45,000 | 30,000 |
P&L App. A/c | 80,000 | 60,000 | 40,000 | ||||
Balance c/d | 77,920 | 22,340 | 44,860 | ||||
1,51,520 | 1,23,640 | 75,760 | 1,51,520 | 1,23,640 | 75,760 | ||
Working Notes: Calculation of Interest on Advances
Note: Interest on advances is calculated for an average period of six months because date of withdrawal is not given.
Answer:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs |
|||
Interest on Capital @ 5% | Profit and Loss A/c | 3,96,000 | ||||
X
|
24,000 | (4,44,000 - 48,000) | ||||
Y
|
20,000 | 44,000 | Interest on Drawings (WN1) | |||
X
|
312 | |||||
Salary to X @10% of Net Profit | 39,600 |
Y
|
432 | |||
Commission to Y (WN2) | 35,640 |
Z
|
528 | 1,272 | ||
Profit transferred to: | ||||||
X’s Capital A/c
|
1,39,016 | |||||
Y’s Capital A/c
|
69,508 | |||||
Z’s Capital A/c
|
69,508 | 2,78,032 | ||||
3,97,272 | 3,97,272 | |||||
Working Notes:
WN 1: Calculation of Interest on Drawings
WN 2: Calculation of Commission
Commission to Y after charging X’s Salary:
Profit after X’s Salary = 3,96,000 – 39,600 = Rs 3,56,400
Page No 2.85:
Question 41:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs |
|||
Interest on Capital @ 5% | Profit and Loss A/c | 3,96,000 | ||||
X
|
24,000 | (4,44,000 - 48,000) | ||||
Y
|
20,000 | 44,000 | Interest on Drawings (WN1) | |||
X
|
312 | |||||
Salary to X @10% of Net Profit | 39,600 |
Y
|
432 | |||
Commission to Y (WN2) | 35,640 |
Z
|
528 | 1,272 | ||
Profit transferred to: | ||||||
X’s Capital A/c
|
1,39,016 | |||||
Y’s Capital A/c
|
69,508 | |||||
Z’s Capital A/c
|
69,508 | 2,78,032 | ||||
3,97,272 | 3,97,272 | |||||
Working Notes:
WN 1: Calculation of Interest on Drawings
WN 2: Calculation of Commission
Commission to Y after charging X’s Salary:
Profit after X’s Salary = 3,96,000 – 39,600 = Rs 3,56,400
Answer:
Profit and Loss Appropriation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Interest on Capital (WN1) | Profit and Loss A/c | 10,50,000 | ||||
Ram
|
7,500 | (10,35,000 + 15,000) | ||||
Shyam
|
5,000 | Interest on Drawings (WN2) | ||||
Mohan
|
3,750 | 16,250 |
Ram
|
105 | ||
Salary to Mohan | 15,000 |
Shyam
|
135 | |||
Interest on Current A/c to Ram |
1,200 |
Mohan
|
150 | 390 | ||
Commission to Ram (WN4) | 52,500 | Interest on Current A/c (WN3) | ||||
Commission to Shyam (WN4) | 50,000 |
Shyam
|
855 | |||
Profit transferred to: |
Mohan
|
655 | 1,510 | |||
Ram’s Capital A/c
|
3,66,780 | |||||
Shyam’s Capital A/c
|
3,66,780 | |||||
Mohan’s Capital A/c
|
1,83,390 | 9,16,950 | ||||
10,51,900 | 10,51,900 | |||||
Working Notes:
WN 1: Calculation of Interest on Capital
WN 2: Calculation of Interest on Drawings:
WN 3: Calculation of Interest on Current Account
WN 4: Calculation of Commission
Page No 2.85:
Question 42:
Profit and Loss Appropriation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Interest on Capital (WN1) | Profit and Loss A/c | 10,50,000 | ||||
Ram
|
7,500 | (10,35,000 + 15,000) | ||||
Shyam
|
5,000 | Interest on Drawings (WN2) | ||||
Mohan
|
3,750 | 16,250 |
Ram
|
105 | ||
Salary to Mohan | 15,000 |
Shyam
|
135 | |||
Interest on Current A/c to Ram |
1,200 |
Mohan
|
150 | 390 | ||
Commission to Ram (WN4) | 52,500 | Interest on Current A/c (WN3) | ||||
Commission to Shyam (WN4) | 50,000 |
Shyam
|
855 | |||
Profit transferred to: |
Mohan
|
655 | 1,510 | |||
Ram’s Capital A/c
|
3,66,780 | |||||
Shyam’s Capital A/c
|
3,66,780 | |||||
Mohan’s Capital A/c
|
1,83,390 | 9,16,950 | ||||
10,51,900 | 10,51,900 | |||||
Working Notes:
WN 1: Calculation of Interest on Capital
WN 2: Calculation of Interest on Drawings:
WN 3: Calculation of Interest on Current Account
WN 4: Calculation of Commission
Answer:
Profit and Loss Account for the year ended March 31,2016 |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Manager’s Commission |
750 |
Profit before B’s Salary |
15,000 |
(5% of Rs 15,000) |
|
(12,500+2,500) |
|
Profit transferred to Profit and Loss Appropriation Account |
14,250 |
|
|
|
15,000 |
|
15,000 |
|
|
|
|
Profit and Loss Appropriation Account for the year ended March 31,2016 |
|||||
Dr. |
|
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Interest on Capital A/c: |
|
Profit and Loss A/c |
14,250 |
||
A |
3,000 |
|
|
|
|
B |
1,800 |
4,800 |
|
|
|
B’s Salary |
2,500 |
|
|
||
Profit transferred to: |
|
|
|
||
A’s Capital A/c |
4,170 |
|
|
|
|
B’s Capital A/c |
2,780 |
6,950 |
|
|
|
|
14,250 |
|
14,250 |
||
|
|
|
|
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
A |
B |
Particulars |
A |
B |
|
Balance c/d |
57,170 |
37,080 |
Balance b/d |
50,000 |
30,000 |
|
|
|
|
Interest on Capital A/c |
3,000 |
1,800 |
|
|
|
|
Salary A/c |
|
2,500 |
|
|
|
|
P/L Appropriation A/c |
4,170 |
2,780 |
|
|
57,170 |
37,080 |
|
57,170 |
37,080 |
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Managers’ Commission
1. Managers’ Commission = 5% on Net Profit (before Salary)
Profit before Salary = Profit after Salary + Salary = 12,500 + 2500 = Rs 15,000
WN 2 Calculation of Interest on Capital
WN 3 Calculation of Profit Share of each Partner
Profit available for distribution = 12,500 − 750 − 3,000 − 1,800 = Rs 6,950
Profit sharing ratio = 3 : 2
Page No 2.86:
Question 43:
Profit and Loss Account for the year ended March 31,2016 |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Manager’s Commission |
750 |
Profit before B’s Salary |
15,000 |
(5% of Rs 15,000) |
|
(12,500+2,500) |
|
Profit transferred to Profit and Loss Appropriation Account |
14,250 |
|
|
|
15,000 |
|
15,000 |
|
|
|
|
Profit and Loss Appropriation Account for the year ended March 31,2016 |
|||||
Dr. |
|
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Interest on Capital A/c: |
|
Profit and Loss A/c |
14,250 |
||
A |
3,000 |
|
|
|
|
B |
1,800 |
4,800 |
|
|
|
B’s Salary |
2,500 |
|
|
||
Profit transferred to: |
|
|
|
||
A’s Capital A/c |
4,170 |
|
|
|
|
B’s Capital A/c |
2,780 |
6,950 |
|
|
|
|
14,250 |
|
14,250 |
||
|
|
|
|
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
A |
B |
Particulars |
A |
B |
|
Balance c/d |
57,170 |
37,080 |
Balance b/d |
50,000 |
30,000 |
|
|
|
|
Interest on Capital A/c |
3,000 |
1,800 |
|
|
|
|
Salary A/c |
|
2,500 |
|
|
|
|
P/L Appropriation A/c |
4,170 |
2,780 |
|
|
57,170 |
37,080 |
|
57,170 |
37,080 |
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Managers’ Commission
1. Managers’ Commission = 5% on Net Profit (before Salary)
Profit before Salary = Profit after Salary + Salary = 12,500 + 2500 = Rs 15,000
WN 2 Calculation of Interest on Capital
WN 3 Calculation of Profit Share of each Partner
Profit available for distribution = 12,500 − 750 − 3,000 − 1,800 = Rs 6,950
Profit sharing ratio = 3 : 2
Answer:
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
|||||
Dr. |
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Salary to A (500 × 12) |
6,000 |
Profit and Loss A/c |
50,000 |
||
Interest on Capital: |
|
|
|
||
A |
3,000 |
|
|
|
|
B |
4,500 |
7,500 |
|
|
|
Profit transferred to : |
|
|
|
||
A’s Capital A/c |
18,250 |
|
|
|
|
B’s Capital A/c |
18,250 |
36,500 |
|
|
|
|
50,000 |
|
50,000 |
||
|
|
|
|
Partners’ Capital Accounts |
|||||
Dr. |
|
|
|
|
Cr. |
Particulars |
A |
B |
Particulars |
A |
B |
Drawings A/c |
15,000 |
20,000 |
Balance b/d |
50,000 |
1,00,000 |
|
|
|
Salary A/c |
6,000 |
- |
|
|
|
Interest on Capital A/c |
3,000 |
4,500 |
Balance c/d |
62,250 |
1,02,750 |
P/L Appropriation A/c |
18,250 |
18,250 |
|
77,250 |
1,22,750 |
|
77,250 |
1,22,750 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Profit Share of each Partner
Profit available for distribution = Rs 50,000 − 6,000 − 7,500 = 36,500
Page No 2.86:
Question 44:
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
|||||
Dr. |
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Salary to A (500 × 12) |
6,000 |
Profit and Loss A/c |
50,000 |
||
Interest on Capital: |
|
|
|
||
A |
3,000 |
|
|
|
|
B |
4,500 |
7,500 |
|
|
|
Profit transferred to : |
|
|
|
||
A’s Capital A/c |
18,250 |
|
|
|
|
B’s Capital A/c |
18,250 |
36,500 |
|
|
|
|
50,000 |
|
50,000 |
||
|
|
|
|
Partners’ Capital Accounts |
|||||
Dr. |
|
|
|
|
Cr. |
Particulars |
A |
B |
Particulars |
A |
B |
Drawings A/c |
15,000 |
20,000 |
Balance b/d |
50,000 |
1,00,000 |
|
|
|
Salary A/c |
6,000 |
- |
|
|
|
Interest on Capital A/c |
3,000 |
4,500 |
Balance c/d |
62,250 |
1,02,750 |
P/L Appropriation A/c |
18,250 |
18,250 |
|
77,250 |
1,22,750 |
|
77,250 |
1,22,750 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Profit Share of each Partner
Profit available for distribution = Rs 50,000 − 6,000 − 7,500 = 36,500
Answer:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||||
Dr. | Cr. | |||||||
Particulars | Amount Rs |
Particulars | Amount Rs | |||||
Interest on Capital @ 5% | Profit and Loss A/c (Net Profit) | 71,400 | ||||||
A
|
12,500 | |||||||
B
|
6,500 | Interest on Drawings @ 6 % | ||||||
C
|
6,000 | 25,000 |
A
|
2,250 | ||||
Salary: |
B
|
1,125 | ||||||
B
|
16,000 |
C
|
725 | 4,100 | ||||
C
|
14,500 | 30,500 | ||||||
Profit transferred to: | ||||||||
A’s Capital A/c
|
10,000 | |||||||
B’s Capital A/c
|
6,000 | |||||||
C’s Capital A/c
|
4,000 | 20,000 | ||||||
75,500 | 75,500 | |||||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | A | B | C | Date | Particulars | A | B | C | ||
2016 | 2015 | ||||||||||
March 31 | Drawings A/c | 40,000 | 25,000 | 15,000 | April 01 | Balance b/d | 2,50,000 | 1,30,000 | 1,20,000 | ||
March 31 | Interest on Drawings A/c | 2,250 | 1,125 | 725 | 2016 | ||||||
March 31 | Balance c/d | 2,30,250 | 1,32,375 | 1,28,775 | March 31 | Int. on Cap. A/c | 12,500 | 6,500 | 6,000 | ||
March 31 | Salary A/c | 16,000 | 14,500 | ||||||||
March 31 | P&L App. A/c | 10,000 | 6,000 | 4,000 | |||||||
2,72,500 | 1,58,500 | 1,44,500 | 2,72,500 | 1,58,500 | 1,44,500 | ||||||
Page No 2.86:
Question 45:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||||||
Dr. | Cr. | |||||||
Particulars | Amount Rs |
Particulars | Amount Rs | |||||
Interest on Capital @ 5% | Profit and Loss A/c (Net Profit) | 71,400 | ||||||
A
|
12,500 | |||||||
B
|
6,500 | Interest on Drawings @ 6 % | ||||||
C
|
6,000 | 25,000 |
A
|
2,250 | ||||
Salary: |
B
|
1,125 | ||||||
B
|
16,000 |
C
|
725 | 4,100 | ||||
C
|
14,500 | 30,500 | ||||||
Profit transferred to: | ||||||||
A’s Capital A/c
|
10,000 | |||||||
B’s Capital A/c
|
6,000 | |||||||
C’s Capital A/c
|
4,000 | 20,000 | ||||||
75,500 | 75,500 | |||||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | A | B | C | Date | Particulars | A | B | C | ||
2016 | 2015 | ||||||||||
March 31 | Drawings A/c | 40,000 | 25,000 | 15,000 | April 01 | Balance b/d | 2,50,000 | 1,30,000 | 1,20,000 | ||
March 31 | Interest on Drawings A/c | 2,250 | 1,125 | 725 | 2016 | ||||||
March 31 | Balance c/d | 2,30,250 | 1,32,375 | 1,28,775 | March 31 | Int. on Cap. A/c | 12,500 | 6,500 | 6,000 | ||
March 31 | Salary A/c | 16,000 | 14,500 | ||||||||
March 31 | P&L App. A/c | 10,000 | 6,000 | 4,000 | |||||||
2,72,500 | 1,58,500 | 1,44,500 | 2,72,500 | 1,58,500 | 1,44,500 | ||||||
Answer:
Profit and Loss Appropriation Account |
||||||
Dr. |
|
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Interest on Capital: |
|
Profit and Loss A/c |
45,000 |
|||
A |
2,500 |
|
|
|
||
B |
1,500 |
|
|
|
||
C |
1,000 |
5,000 |
|
|
||
Salary to: |
|
|
|
|||
B |
5,000 |
|
|
|
||
C |
5,000 |
10,000 |
|
|
||
Profit transferred to: |
|
|
|
|||
A’s Current A/c |
15,000 |
|
|
|
||
B’s Current A/c |
9,000 |
|
|
|
||
C’s Current A/c |
6,000 |
30,000 |
|
|
||
|
45,000 |
|
45,000 |
|||
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
50,000 |
30,000 |
20,000 |
Balance c/d |
50,000 |
30,000 |
20,000 |
|
|
|
|
|
50,000 |
30,000 |
20,000 |
|
50,000 |
30,000 |
20,000 |
|
|
|
|
|
|
|
|
Partners’ Current Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Drawings A/c |
10,000 |
7,500 |
6,000 |
Balance b/d |
4,500 |
1,500 |
1,000 |
|
|
|
|
Interest on Capital A/c |
2,500 |
1,500 |
1,000 |
|
|
|
|
Salaries A/c |
|
5,000 |
5,000 |
Balance c/d |
12,000 |
9,500 |
7,000 |
P/L Appropriation A/c |
15,000 |
9,000 |
6,000 |
|
22,000 |
17,000 |
13,000 |
|
22,000 |
17,000 |
13,000 |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Profit Share of each Partner
Profit available for Distribution = 45,000 − 15,000 = Rs 30,000
Page No 2.86:
Question 46:
Profit and Loss Appropriation Account |
||||||
Dr. |
|
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Interest on Capital: |
|
Profit and Loss A/c |
45,000 |
|||
A |
2,500 |
|
|
|
||
B |
1,500 |
|
|
|
||
C |
1,000 |
5,000 |
|
|
||
Salary to: |
|
|
|
|||
B |
5,000 |
|
|
|
||
C |
5,000 |
10,000 |
|
|
||
Profit transferred to: |
|
|
|
|||
A’s Current A/c |
15,000 |
|
|
|
||
B’s Current A/c |
9,000 |
|
|
|
||
C’s Current A/c |
6,000 |
30,000 |
|
|
||
|
45,000 |
|
45,000 |
|||
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
50,000 |
30,000 |
20,000 |
Balance c/d |
50,000 |
30,000 |
20,000 |
|
|
|
|
|
50,000 |
30,000 |
20,000 |
|
50,000 |
30,000 |
20,000 |
|
|
|
|
|
|
|
|
Partners’ Current Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Drawings A/c |
10,000 |
7,500 |
6,000 |
Balance b/d |
4,500 |
1,500 |
1,000 |
|
|
|
|
Interest on Capital A/c |
2,500 |
1,500 |
1,000 |
|
|
|
|
Salaries A/c |
|
5,000 |
5,000 |
Balance c/d |
12,000 |
9,500 |
7,000 |
P/L Appropriation A/c |
15,000 |
9,000 |
6,000 |
|
22,000 |
17,000 |
13,000 |
|
22,000 |
17,000 |
13,000 |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Profit Share of each Partner
Profit available for Distribution = 45,000 − 15,000 = Rs 30,000
Answer:
Profit and Loss Appropriation Account
for the year ended…
|
|||||
Dr. | Cr. | ||||
Particulars | Amount Rs | Particulars | Amount Rs | ||
Interest on Capital @ 5% | Profit and Loss A/c (Net Profit) | 15,000 | |||
Satish
|
2,500 | ||||
Parkash
|
1,500 | 4,000 | Interest on Drawings (WN1) | ||
Satish
|
120 | ||||
Salary to Satish | 1,200 |
Parkash
|
80 | 200 | |
Profit transferred to (WN2) | |||||
Satish’s Capital A/c
|
5,400 | ||||
Parkash’s Capital A/c
|
4,600 | 10,000 | |||
15,200 | 15,200 | ||||
Partners’ Capital Accounts | |||||||
Dr. | Cr. | ||||||
Particulars | Satish | Parkash | Particulars | Satish | Parkash | ||
Balance b/d | 50,000 | 30,000 | |||||
Balance c/d | 50,000 | 30,000 | |||||
50,000 | 30,000 | 50,000 | 30,000 | ||||
Partners’ Current Accounts | |||||||
Dr. | Cr. | ||||||
Particulars | Satish | Parkash | Particulars | Satish | Parkash | ||
Drawings A/c | 3,000 | 3,000 | Balance b/d | 1,500 | 2,000 | ||
Interest on Drawings A/c | 120 | 80 | Interest on Capital A/c | 2,500 | 1,500 | ||
Salary | 1,200 | ||||||
P&L Appropriation A/c | 5,400 | 4,600 | |||||
Balance c/d | 7,480 | 5,020 | |||||
10,600 | 8,100 | 10,600 | 8,100 | ||||
Working Notes:
WN 1: Calculation of Interest on Drawings
Particulars | Satish | Parkash |
Amount Withdrawn | 3,000 | 3,000 |
Less: Balance of Current A/c
|
1,500 | 2,000 |
Net Amount | 1,500 | 1,000 |
Interest |
WN 2: Calculation of profit transferred to Partners’ Capital Accounts
Net Distributable Profit = 15,200 - 5,200 = Rs 10,000
First Rs 4,000 to be distributed in 60:40 ratio to Satish and Parkash respectively:
Remaining profit of Rs 6,000 to be distributed equally i.e, Rs 3,000 each.
Total Satish’s Profit = 2,400 + 3,000 = Rs 5,400
Total Parkash’s Profit = 1,600 + 3,000 = Rs 4,600
Page No 2.87:
Question 47:
Profit and Loss Appropriation Account
for the year ended…
|
|||||
Dr. | Cr. | ||||
Particulars | Amount Rs | Particulars | Amount Rs | ||
Interest on Capital @ 5% | Profit and Loss A/c (Net Profit) | 15,000 | |||
Satish
|
2,500 | ||||
Parkash
|
1,500 | 4,000 | Interest on Drawings (WN1) | ||
Satish
|
120 | ||||
Salary to Satish | 1,200 |
Parkash
|
80 | 200 | |
Profit transferred to (WN2) | |||||
Satish’s Capital A/c
|
5,400 | ||||
Parkash’s Capital A/c
|
4,600 | 10,000 | |||
15,200 | 15,200 | ||||
Partners’ Capital Accounts | |||||||
Dr. | Cr. | ||||||
Particulars | Satish | Parkash | Particulars | Satish | Parkash | ||
Balance b/d | 50,000 | 30,000 | |||||
Balance c/d | 50,000 | 30,000 | |||||
50,000 | 30,000 | 50,000 | 30,000 | ||||
Partners’ Current Accounts | |||||||
Dr. | Cr. | ||||||
Particulars | Satish | Parkash | Particulars | Satish | Parkash | ||
Drawings A/c | 3,000 | 3,000 | Balance b/d | 1,500 | 2,000 | ||
Interest on Drawings A/c | 120 | 80 | Interest on Capital A/c | 2,500 | 1,500 | ||
Salary | 1,200 | ||||||
P&L Appropriation A/c | 5,400 | 4,600 | |||||
Balance c/d | 7,480 | 5,020 | |||||
10,600 | 8,100 | 10,600 | 8,100 | ||||
Working Notes:
WN 1: Calculation of Interest on Drawings
Particulars | Satish | Parkash |
Amount Withdrawn | 3,000 | 3,000 |
Less: Balance of Current A/c
|
1,500 | 2,000 |
Net Amount | 1,500 | 1,000 |
Interest |
WN 2: Calculation of profit transferred to Partners’ Capital Accounts
Net Distributable Profit = 15,200 - 5,200 = Rs 10,000
First Rs 4,000 to be distributed in 60:40 ratio to Satish and Parkash respectively:
Remaining profit of Rs 6,000 to be distributed equally i.e, Rs 3,000 each.
Total Satish’s Profit = 2,400 + 3,000 = Rs 5,400
Total Parkash’s Profit = 1,600 + 3,000 = Rs 4,600
Answer:
Profit and Loss Appropriation Account |
||||||
Dr. |
|
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Interest on Capital A/c: |
|
Profit and Loss A/c |
25,200 |
|||
A |
1,500 |
|
Interest on Drawings A/c: |
|
||
B |
1,000 |
2,500 |
A |
400 |
|
|
Salary to B (600 × 12) |
7,200 |
B |
350 |
750 |
||
Commission to A (60,000 × 5%) |
3,000 |
|
|
|||
Profit transferred to: |
|
|
|
|||
A’s Capital A/c (13,250/2) |
6,625 |
|
|
|
||
B’s Capital A/c (13,250/2) |
6,625 |
13,250 |
|
|
||
|
25,950 |
|
25,950 |
|||
|
|
|
|
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
A |
B |
Particulars |
A |
B |
|
Drawings A/c |
8,000 |
7,000 |
Balance b/d |
30,000 |
20,000 |
|
Interest on Drawings A/c |
400 |
350 |
Interest on Capital A/c |
1,500 |
1,000 |
|
|
|
|
Salary A/c |
- |
7,200 |
|
|
|
|
Commission A/c |
3,000 |
- |
|
Balance c/d |
32,725 |
27,475 |
P/L Appropriation A/c |
6,625 |
6,625 |
|
|
41,125 |
34,825 |
|
41,125 |
34,825 |
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Interest on Drawings
WN 3 Calculation of Profit Share of each Partner
Profit available for Distribution = 25,200 + 750 – 2,500 – 7,200 – 3,000 = 13,250
Page No 2.87:
Question 48:
Profit and Loss Appropriation Account |
||||||
Dr. |
|
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Interest on Capital A/c: |
|
Profit and Loss A/c |
25,200 |
|||
A |
1,500 |
|
Interest on Drawings A/c: |
|
||
B |
1,000 |
2,500 |
A |
400 |
|
|
Salary to B (600 × 12) |
7,200 |
B |
350 |
750 |
||
Commission to A (60,000 × 5%) |
3,000 |
|
|
|||
Profit transferred to: |
|
|
|
|||
A’s Capital A/c (13,250/2) |
6,625 |
|
|
|
||
B’s Capital A/c (13,250/2) |
6,625 |
13,250 |
|
|
||
|
25,950 |
|
25,950 |
|||
|
|
|
|
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
A |
B |
Particulars |
A |
B |
|
Drawings A/c |
8,000 |
7,000 |
Balance b/d |
30,000 |
20,000 |
|
Interest on Drawings A/c |
400 |
350 |
Interest on Capital A/c |
1,500 |
1,000 |
|
|
|
|
Salary A/c |
- |
7,200 |
|
|
|
|
Commission A/c |
3,000 |
- |
|
Balance c/d |
32,725 |
27,475 |
P/L Appropriation A/c |
6,625 |
6,625 |
|
|
41,125 |
34,825 |
|
41,125 |
34,825 |
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Interest on Drawings
WN 3 Calculation of Profit Share of each Partner
Profit available for Distribution = 25,200 + 750 – 2,500 – 7,200 – 3,000 = 13,250
Answer:
Profit and Loss Appropriation Account for the year ended March 31 2016 |
|||||
Dr. |
|
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Interest on Capital |
|
Profit and Loss A/c (3,50,000+12,000) |
3,62,000 |
||
X’s Current A/c |
4,000 |
|
Interest on Drawings |
|
|
Y’s Current A/c |
3,000 |
|
X’s Current A/c |
1,560 |
|
Z’s Current A/c |
1,500 |
8,500 |
Y’s Current A/c |
2,640 |
|
Z’s Current A/c (Interest) |
960 |
Z’s Current A/c |
540 |
4,740 |
|
Commission to: |
|
Interest on Current A/c |
|
||
X ’s Current A/c |
18,100 |
|
X’s Current A/c |
684 |
|
Y ’s Current A/c |
17,238 |
35,338 |
Y’s Current A/c |
524 |
1,208 |
Z’s Current A/c (Salary) |
12,000 |
|
|
||
Profit transferred to: |
|
|
|
||
X’s Current A/c |
1,24,460 |
|
|
|
|
Y’s Current A/c |
1,24,460 |
|
|
|
|
Z’s Current A/c |
62,230 |
3,11,150 |
|
|
|
|
3,67,948 |
|
3,67,948 |
||
|
|
|
|
Working Notes:
Calculation of Interest on CapitalCalculation of Interest on Current Account Balances
Calculation of Interest on Drawings
Calculation of Commission
Page No 2.87:
Question 49:
Profit and Loss Appropriation Account for the year ended March 31 2016 |
|||||
Dr. |
|
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Interest on Capital |
|
Profit and Loss A/c (3,50,000+12,000) |
3,62,000 |
||
X’s Current A/c |
4,000 |
|
Interest on Drawings |
|
|
Y’s Current A/c |
3,000 |
|
X’s Current A/c |
1,560 |
|
Z’s Current A/c |
1,500 |
8,500 |
Y’s Current A/c |
2,640 |
|
Z’s Current A/c (Interest) |
960 |
Z’s Current A/c |
540 |
4,740 |
|
Commission to: |
|
Interest on Current A/c |
|
||
X ’s Current A/c |
18,100 |
|
X’s Current A/c |
684 |
|
Y ’s Current A/c |
17,238 |
35,338 |
Y’s Current A/c |
524 |
1,208 |
Z’s Current A/c (Salary) |
12,000 |
|
|
||
Profit transferred to: |
|
|
|
||
X’s Current A/c |
1,24,460 |
|
|
|
|
Y’s Current A/c |
1,24,460 |
|
|
|
|
Z’s Current A/c |
62,230 |
3,11,150 |
|
|
|
|
3,67,948 |
|
3,67,948 |
||
|
|
|
|
Working Notes:
Calculation of Interest on CapitalCalculation of Interest on Current Account Balances
Calculation of Interest on Drawings
Calculation of Commission
Answer:
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: |
|
Profit and Loss A/c (Net Profit) |
31,500 |
|
A’s Capital A/c |
16,000 |
|
|
|
B’s Capital A/c |
8,000 |
|
|
|
C’s Capital A/c |
7,500 |
31,500 |
|
|
|
31,500 |
|
31,500 |
|
|
|
|
|
Working Notes:
Profit for the year = Rs 31,500
Profit sharing ratio = 4 : 2 : 1
C is given a guarantee of minimum profit of Rs 7,500
C’s Actual Profit Share (i.e. Rs 4,500) is less than his Minimum Guaranteed Profit (i.e. Rs 7,500) ∴ Deficiency in C’s Profit Share = 7,500 − 4,500 = Rs 3,000
This deficiency is to be borne by A and B in their profit sharing ratio i.e. 4 : 2
Therefore,
Final Profit Share of A = 18,000 − 2,000 = Rs 16,000
Final Profit Share of B = 9,000 − 1,000 = Rs 8,000
Final Profit Share of C = 4,500 + 3,000 = Rs 7,500
Page No 2.87:
Question 50:
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: |
|
Profit and Loss A/c (Net Profit) |
31,500 |
|
A’s Capital A/c |
16,000 |
|
|
|
B’s Capital A/c |
8,000 |
|
|
|
C’s Capital A/c |
7,500 |
31,500 |
|
|
|
31,500 |
|
31,500 |
|
|
|
|
|
Working Notes:
Profit for the year = Rs 31,500
Profit sharing ratio = 4 : 2 : 1
C is given a guarantee of minimum profit of Rs 7,500
C’s Actual Profit Share (i.e. Rs 4,500) is less than his Minimum Guaranteed Profit (i.e. Rs 7,500) ∴ Deficiency in C’s Profit Share = 7,500 − 4,500 = Rs 3,000
This deficiency is to be borne by A and B in their profit sharing ratio i.e. 4 : 2
Therefore,
Final Profit Share of A = 18,000 − 2,000 = Rs 16,000
Final Profit Share of B = 9,000 − 1,000 = Rs 8,000
Final Profit Share of C = 4,500 + 3,000 = Rs 7,500
Answer:
Profit and Loss Appropriation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Profit and Loss A/c (Net Loss) | 4,50,000 | Loss transferred to: | ||||
X’s Capital A/c
|
1,50,000 | |||||
Y’s Capital A/c
|
1,50,000 | |||||
Z’s Capital A/c
|
1,50,000 | 4,50,000 | ||||
4,50,000 | 4,50,000 | |||||
Partners’ Capital Accounts | ||||||||||||
Dr. | Cr. | |||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | |||
2016 | 2015 | |||||||||||
March 31 | P&L App. A/c | 1,50,000 | 1,50,000 | 1,50,000 | April 01 | Balance b/d | 15,00,000 | 12,00,000 | 9,00,000 | |||
2016 | ||||||||||||
March 31 | Z’s Capital A/c | 1,50,000 | 1,50,000 | March 31 | X’s Capital A/c | 1,50,000 | ||||||
March 31 | Balance c/d | 12,00,000 | 9,00,000 | 10,50,000 | Y’s Capital A/c | 1,50,000 | ||||||
15,00,000 | 12,00,000 | 12,00,000 | 15,00,000 | 12,00,000 | 12,00,000 | |||||||
Note: (i) Loss of Rs 4,50,000 has been debited to each Partners Capital A/c equally, i.e. Rs 1,50,000 each
(ii) However, Z is guaranteed a minimum profit of Rs1,50,000. Therefore, he needs to be compensated for Rs 1,50,000 loss that has already been debited to his account and Rs 1,50,000 profit that is guaranteed to him.(iii) The total of Rs 3,00,000 given to Z is to be compensated by X and Y equally and hence both of their accounts have been debited by Rs 1,50,000 each and Z’s Account is to be credited with Rs 3,00,000.
Page No 2.88:
Question 51:
Profit and Loss Appropriation Account | ||||||
Dr. | Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Profit and Loss A/c (Net Loss) | 4,50,000 | Loss transferred to: | ||||
X’s Capital A/c
|
1,50,000 | |||||
Y’s Capital A/c
|
1,50,000 | |||||
Z’s Capital A/c
|
1,50,000 | 4,50,000 | ||||
4,50,000 | 4,50,000 | |||||
Partners’ Capital Accounts | ||||||||||||
Dr. | Cr. | |||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | |||
2016 | 2015 | |||||||||||
March 31 | P&L App. A/c | 1,50,000 | 1,50,000 | 1,50,000 | April 01 | Balance b/d | 15,00,000 | 12,00,000 | 9,00,000 | |||
2016 | ||||||||||||
March 31 | Z’s Capital A/c | 1,50,000 | 1,50,000 | March 31 | X’s Capital A/c | 1,50,000 | ||||||
March 31 | Balance c/d | 12,00,000 | 9,00,000 | 10,50,000 | Y’s Capital A/c | 1,50,000 | ||||||
15,00,000 | 12,00,000 | 12,00,000 | 15,00,000 | 12,00,000 | 12,00,000 | |||||||
Note: (i) Loss of Rs 4,50,000 has been debited to each Partners Capital A/c equally, i.e. Rs 1,50,000 each
(ii) However, Z is guaranteed a minimum profit of Rs1,50,000. Therefore, he needs to be compensated for Rs 1,50,000 loss that has already been debited to his account and Rs 1,50,000 profit that is guaranteed to him.(iii) The total of Rs 3,00,000 given to Z is to be compensated by X and Y equally and hence both of their accounts have been debited by Rs 1,50,000 each and Z’s Account is to be credited with Rs 3,00,000.
Answer:
Profit and Loss Appropriation Account for the year ended March 31, 2015 |
||||
Dr. | Cr. | |||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: (WN 1) |
|
Profit and Loss A/c (Net Profit) |
40,000 |
|
A’s Capital A/c |
16,000 |
|
|
|
B’s Capital A/c |
14,000 |
|
|
|
C’s Capital A/c |
10,000 |
40,000 |
|
|
|
40,000 |
|
40,000 |
|
|
|
|
|
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
||||
Dr. | Cr. | |||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: |
|
Profit and Loss A/c (Net Profit) |
60,000 |
|
A’s Capital A/c |
24,000 |
|
|
|
B’s Capital A/c |
24,000 |
|
|
|
C’s Capital A/c |
12,000 |
60,000 |
|
|
|
60,000 |
|
60,000 |
|
|
|
|
|
Working Notes:
WN 1 Distribution of Profit for the year 2015
Profit for 2015 = Rs 40,000
Profit sharing ratio = 2 : 2 : 1
C is given a guarantee of minimum profit of Rs 10,000
Deficiency in C’s Profit Share = 10,000 − 8,000 = Rs 2,000
This deficiency is to be borne by B.
Therefore,
Final Profit Share of A = 16,000
Final Profit Share of B = 16,000 − 2,000 = Rs 14,000
Final Profit Share of C = 8,000 + 2,000 = Rs 10,000
WN 2 Distribution of Profit for the year 2016
Profit for 2016 = Rs 60,000
Profit sharing ratio = 2 : 2 : 1
C is given a guarantee of minimum profit of Rs 10,000
Page No 2.88:
Question 52:
Profit and Loss Appropriation Account for the year ended March 31, 2015 |
||||
Dr. | Cr. | |||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: (WN 1) |
|
Profit and Loss A/c (Net Profit) |
40,000 |
|
A’s Capital A/c |
16,000 |
|
|
|
B’s Capital A/c |
14,000 |
|
|
|
C’s Capital A/c |
10,000 |
40,000 |
|
|
|
40,000 |
|
40,000 |
|
|
|
|
|
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
||||
Dr. | Cr. | |||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: |
|
Profit and Loss A/c (Net Profit) |
60,000 |
|
A’s Capital A/c |
24,000 |
|
|
|
B’s Capital A/c |
24,000 |
|
|
|
C’s Capital A/c |
12,000 |
60,000 |
|
|
|
60,000 |
|
60,000 |
|
|
|
|
|
Working Notes:
WN 1 Distribution of Profit for the year 2015
Profit for 2015 = Rs 40,000
Profit sharing ratio = 2 : 2 : 1
C is given a guarantee of minimum profit of Rs 10,000
Deficiency in C’s Profit Share = 10,000 − 8,000 = Rs 2,000
This deficiency is to be borne by B.
Therefore,
Final Profit Share of A = 16,000
Final Profit Share of B = 16,000 − 2,000 = Rs 14,000
Final Profit Share of C = 8,000 + 2,000 = Rs 10,000
WN 2 Distribution of Profit for the year 2016
Profit for 2016 = Rs 60,000
Profit sharing ratio = 2 : 2 : 1
C is given a guarantee of minimum profit of Rs 10,000
Answer:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Interest on Capital @ 5%: | Profit and Loss A/c (Net Profit) | 1,59,000 | ||
X
|
16,000 | |||
Y
|
10,000 | |||
Z
|
8,000 | 34,000 | ||
Profit transferred to: (WN) | ||||
X’s Capital A/c (62,500 – 5,000)
|
57,500 | |||
Y’s Capital A/c
|
37,500 | |||
Z’s Capital A/c (25,000 + 5,000)
|
30,000 | 1,25,000 | ||
1,59,000 | 1,59,000 | |||
Working Notes: Calculation of Profit
Profit after charging interest on capital = 1,59,000 - 34,000 = Rs 1,25,000
X guaranteed minimum profit amount of Rs 30,000 to Z. Thus, Rs 5,000 should be added to Z’s Capital Account and to be deducted from X’s Capital Account.
Page No 2.88:
Question 53:
Profit and Loss Appropriation Account
for the year ended 31st March, 2016
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Interest on Capital @ 5%: | Profit and Loss A/c (Net Profit) | 1,59,000 | ||
X
|
16,000 | |||
Y
|
10,000 | |||
Z
|
8,000 | 34,000 | ||
Profit transferred to: (WN) | ||||
X’s Capital A/c (62,500 – 5,000)
|
57,500 | |||
Y’s Capital A/c
|
37,500 | |||
Z’s Capital A/c (25,000 + 5,000)
|
30,000 | 1,25,000 | ||
1,59,000 | 1,59,000 | |||
Working Notes: Calculation of Profit
Profit after charging interest on capital = 1,59,000 - 34,000 = Rs 1,25,000
X guaranteed minimum profit amount of Rs 30,000 to Z. Thus, Rs 5,000 should be added to Z’s Capital Account and to be deducted from X’s Capital Account.
Answer:
Profit and Loss Appropriation Account
for the year ended…
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Profit transferred to: | Profit and Loss A/c (Net Profit) | 2,22,000 | ||
X’s Capital A/c
|
1,16,550 | |||
Y’s Capital A/c
|
77,700 | |||
Z’s Capital A/c
|
27,750 | 2,22,000 | ||
2,22,000 | 2,22,000 | |||
Working Notes:
Profit for the year= Rs 2,22,000
Amount payable to Z as an employee:
Total = Rs 33,428.5 (24,000 + 9,428.50)
Thus, nothing will be borne by X and Y as Z will be getting less than what he used to get as an employee.
Profit available for X and Y after giving Z’s share= 2,22,000 – 27,750 = Rs 1,94,250
Note : Answer above doesn’t match with the solution given in the book
Page No 2.88:
Question 54:
Profit and Loss Appropriation Account
for the year ended…
|
||||
Dr. | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | |
Profit transferred to: | Profit and Loss A/c (Net Profit) | 2,22,000 | ||
X’s Capital A/c
|
1,16,550 | |||
Y’s Capital A/c
|
77,700 | |||
Z’s Capital A/c
|
27,750 | 2,22,000 | ||
2,22,000 | 2,22,000 | |||
Working Notes:
Profit for the year= Rs 2,22,000
Amount payable to Z as an employee:
Total = Rs 33,428.5 (24,000 + 9,428.50)
Thus, nothing will be borne by X and Y as Z will be getting less than what he used to get as an employee.
Profit available for X and Y after giving Z’s share= 2,22,000 – 27,750 = Rs 1,94,250
Note : Answer above doesn’t match with the solution given in the book
Answer:
Profit and Loss Appropriation Account |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: |
|
Profit and Loss A/c (Net Profit) |
75,000 |
|
A’s Capital A/c |
41,400 |
|
B’s Capital A/c |
|
B’s Capital A/c |
27,600 |
|
(Deficiency in Revenue) |
9,000 |
C’s Capital A/c |
15,000 |
84,000 |
|
|
|
84,000 |
|
84,000 |
|
|
|
|
|
Working Notes:
Deficiency in revenue guaranteed by B = 25,000 − 16,000 = Rs 9,000
∴ Profit to be distributed among Partners = 75,000 + B’s deficiency in guaranteed interest
= 75,000 + 9,000 = Rs 84,000
Profit sharing ratio = 3 : 2 : 1
C is given a guarantee of minimum profit of Rs 15,000
Deficiency in C’s Profit Share = 15,000 − 14,000 = Rs 1,000
Therefore, Final Profit Share of A = 42,000 − 600 = Rs 41,400
Final Profit Share of B = 28,000 − 400 = Rs 27,600**
Final Profit Share of C =14,000 + 1,000 = Rs 15,000
** In the book, the final profit to B is given as Rs 18,600, however, as per the solution it should be Rs 27,600. The deficiency of Rs 9,000 that was guaranteed by B to the firm would not be deducted from his share as he is bearing it in form of profit.
Page No 2.88:
Question 55:
Profit and Loss Appropriation Account |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: |
|
Profit and Loss A/c (Net Profit) |
75,000 |
|
A’s Capital A/c |
41,400 |
|
B’s Capital A/c |
|
B’s Capital A/c |
27,600 |
|
(Deficiency in Revenue) |
9,000 |
C’s Capital A/c |
15,000 |
84,000 |
|
|
|
84,000 |
|
84,000 |
|
|
|
|
|
Working Notes:
Deficiency in revenue guaranteed by B = 25,000 − 16,000 = Rs 9,000
∴ Profit to be distributed among Partners = 75,000 + B’s deficiency in guaranteed interest
= 75,000 + 9,000 = Rs 84,000
Profit sharing ratio = 3 : 2 : 1
C is given a guarantee of minimum profit of Rs 15,000
Deficiency in C’s Profit Share = 15,000 − 14,000 = Rs 1,000
Therefore, Final Profit Share of A = 42,000 − 600 = Rs 41,400
Final Profit Share of B = 28,000 − 400 = Rs 27,600**
Final Profit Share of C =14,000 + 1,000 = Rs 15,000
** In the book, the final profit to B is given as Rs 18,600, however, as per the solution it should be Rs 27,600. The deficiency of Rs 9,000 that was guaranteed by B to the firm would not be deducted from his share as he is bearing it in form of profit.
Answer:
Profit and Loss Appropriation Account
for the year ended…
|
|||||
Dr. | Cr. | ||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||
Interest on Capital @ 10% | Profit and Loss A/c (Net Profit) | 5,40,000 | |||
A’s Capital A/c
|
18,000 | ||||
B’s Capital A/c
|
15,000 | ||||
C’s Capital A/c
|
9,000 | ||||
D’s Capital A/c
|
6,000 | 48,000 | |||
C’s Salary | 72,000 | ||||
Profit transferred to: | |||||
A’s Capital A/c (WN)
|
1,05,000 | ||||
B’s Capital A/c
|
90,000 | ||||
C’s Capital A/c (1,56,000 – 72,000 – 9,000)
|
75,000 | ||||
D’s Capital A/c
|
1,50,000 | 4,20,000 | |||
5,40,000 | 5,40,000 | ||||
Working Notes:
Profit available for distribution = 5,40,000- 48,000- 72,000 = Rs 4,20,000
Guaranteed= Rs 1,50,000
Deficiency of Rs 1,08,000, i.e. (1,50,000 - 42,000) is to be borne by A, B, C in their profit sharing ratio
C’s Share of Profit = 60,000 (84,000 – 24,000)
Add: Salary = 72,000
Add: Interest on Capital = 9,000
Total = Rs 1,41,000
Guaranteed by A = Rs 1,56,000
Deficiency to be borne by A = 1,56,000 – 1,41,000 = Rs 15,000
Less: Guarantee to C = Rs 15,000
A’s share= 1,68,000 – 48,000 – 15,000 = Rs 1,05,000
B’s share = 1,26,000 – 36,000 = Rs 90,000
Page No 2.88:
Question 56:
Profit and Loss Appropriation Account
for the year ended…
|
|||||
Dr. | Cr. | ||||
Particulars | Amount Rs |
Particulars | Amount Rs |
||
Interest on Capital @ 10% | Profit and Loss A/c (Net Profit) | 5,40,000 | |||
A’s Capital A/c
|
18,000 | ||||
B’s Capital A/c
|
15,000 | ||||
C’s Capital A/c
|
9,000 | ||||
D’s Capital A/c
|
6,000 | 48,000 | |||
C’s Salary | 72,000 | ||||
Profit transferred to: | |||||
A’s Capital A/c (WN)
|
1,05,000 | ||||
B’s Capital A/c
|
90,000 | ||||
C’s Capital A/c (1,56,000 – 72,000 – 9,000)
|
75,000 | ||||
D’s Capital A/c
|
1,50,000 | 4,20,000 | |||
5,40,000 | 5,40,000 | ||||
Working Notes:
Profit available for distribution = 5,40,000- 48,000- 72,000 = Rs 4,20,000
Guaranteed= Rs 1,50,000
Deficiency of Rs 1,08,000, i.e. (1,50,000 - 42,000) is to be borne by A, B, C in their profit sharing ratio
C’s Share of Profit = 60,000 (84,000 – 24,000)
Add: Salary = 72,000
Add: Interest on Capital = 9,000
Total = Rs 1,41,000
Guaranteed by A = Rs 1,56,000
Deficiency to be borne by A = 1,56,000 – 1,41,000 = Rs 15,000
Less: Guarantee to C = Rs 15,000
A’s share= 1,68,000 – 48,000 – 15,000 = Rs 1,05,000
B’s share = 1,26,000 – 36,000 = Rs 90,000
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Profit and Loss A/c |
Dr. |
|
40,000 |
|
|
To Profit and Loss Appropriation A/c |
|
|
40,000 |
|
|
(Transfer of profit from P&L A/c to P&L Appropriation A/c) |
|
|
|
|
Profit and Loss Appropriation A/c | 40,000 | ||||
To A's Capital A/c | 19,500 | ||||
To B's Capital A/c | 15,500 | ||||
To C's Capital A/c | 5,000 | ||||
|
(Distribution of final share of profits among the partners) |
|
|
|
Profit for the year = Rs 40,000
Profit sharing ratio = 5 : 4 : 1
C is given a guarantee of minimum profit of Rs 5,000
Deficiency in C’s share = 5,000 − 4,000 = Rs 1,000
This deficiency is to be borne by A and B equally.
Therefore,
Final Profit Share of A = 20,000 − 500 = Rs 19,500
Final Profit Share of B = 16,000 − 500 = Rs 15,500
Final Profit Share of C = 4,000 + 1,000 = Rs 5,000
Page No 2.88:
Question 57:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Profit and Loss A/c |
Dr. |
|
40,000 |
|
|
To Profit and Loss Appropriation A/c |
|
|
40,000 |
|
|
(Transfer of profit from P&L A/c to P&L Appropriation A/c) |
|
|
|
|
Profit and Loss Appropriation A/c | 40,000 | ||||
To A's Capital A/c | 19,500 | ||||
To B's Capital A/c | 15,500 | ||||
To C's Capital A/c | 5,000 | ||||
|
(Distribution of final share of profits among the partners) |
|
|
|
Profit for the year = Rs 40,000
Profit sharing ratio = 5 : 4 : 1
C is given a guarantee of minimum profit of Rs 5,000
Deficiency in C’s share = 5,000 − 4,000 = Rs 1,000
This deficiency is to be borne by A and B equally.
Therefore,
Final Profit Share of A = 20,000 − 500 = Rs 19,500
Final Profit Share of B = 16,000 − 500 = Rs 15,500
Final Profit Share of C = 4,000 + 1,000 = Rs 5,000
Answer:
Profit and Loss Appropriation Account |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: |
|
Profit and Loss A/c (before C’s salary) (10,710 + 1,800) |
12,510 |
|
A’s Capital A/c |
6,183 |
|
|
|
B’s Capital A/c |
3,825 |
|
|
|
C’s Capital A/c |
2,502 |
12,510 |
|
|
|
12,510 |
|
12,510 |
|
|
|
|
|
Working Notes:
WN 1 Salary to C = Rs 150 × 12 = Rs 1,800
WN 2
Total Amount for C (Salary and Commission) = 1,800 + 510 = Rs 2,310
WN 3 Profit before C’s Salary = 10,710 + 1,800 = Rs 12,510
WN 4 Excess of 1/5th share over Salary and Commission = 2,502 − 2,310 = Rs 192
Profit available for distribution between A and B = 12,510 − 1,800 − 510 = Rs 10,200
WN 5 A’s share of Profit after C’s deficiency = 6,375 − 192 = Rs 6,183
Page No 2.89:
Question 58:
Profit and Loss Appropriation Account |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit transferred to: |
|
Profit and Loss A/c (before C’s salary) (10,710 + 1,800) |
12,510 |
|
A’s Capital A/c |
6,183 |
|
|
|
B’s Capital A/c |
3,825 |
|
|
|
C’s Capital A/c |
2,502 |
12,510 |
|
|
|
12,510 |
|
12,510 |
|
|
|
|
|
Working Notes:
WN 1 Salary to C = Rs 150 × 12 = Rs 1,800
WN 2
Total Amount for C (Salary and Commission) = 1,800 + 510 = Rs 2,310
WN 3 Profit before C’s Salary = 10,710 + 1,800 = Rs 12,510
WN 4 Excess of 1/5th share over Salary and Commission = 2,502 − 2,310 = Rs 192
Profit available for distribution between A and B = 12,510 − 1,800 − 510 = Rs 10,200
WN 5 A’s share of Profit after C’s deficiency = 6,375 − 192 = Rs 6,183
Answer:
Profit and Loss Appropriation Account for the year ended March 31 2016 |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Interest on Capital |
|
Profit and Loss A/c |
1,60,000 |
|
X’s Capital A/c |
15,000 |
|
|
|
Y’s Capital A/c |
10,000 |
|
|
|
Z’s Capital A/c |
7,500 |
32,500 |
||
Profit transferred to: |
|
|
|
|
X’s Capital A/c |
49,250 |
|
|
|
Y’s Capital A/c |
38,250 |
|
|
|
Z’s Capital A/c |
40,000 |
1,27,500 |
|
|
|
1,60,000 |
|
1,60,000 |
|
|
|
|
|
Working Notes:
Calculation of Interest on Capital
Calculation of Profit share of each partner
Profit after charging interest on capital = 1,60,000 – 32,500 = Rs 1,27,500
Z has been guaranteed Rs 80,000 profit for full year by X. The partnership firm was formed on October 01, 2015, this means for half year, the guaranteed profit should be Rs 40,000 only.
Deficiency = 40,000 (Guaranteed Profit) – 38,250 (Actual Profit)
= Rs 1,750 (to be borne by X)
Calculation of Final Profit share of each partner
Page No 2.89:
Question 59:
Profit and Loss Appropriation Account for the year ended March 31 2016 |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Interest on Capital |
|
Profit and Loss A/c |
1,60,000 |
|
X’s Capital A/c |
15,000 |
|
|
|
Y’s Capital A/c |
10,000 |
|
|
|
Z’s Capital A/c |
7,500 |
32,500 |
||
Profit transferred to: |
|
|
|
|
X’s Capital A/c |
49,250 |
|
|
|
Y’s Capital A/c |
38,250 |
|
|
|
Z’s Capital A/c |
40,000 |
1,27,500 |
|
|
|
1,60,000 |
|
1,60,000 |
|
|
|
|
|
Working Notes:
Calculation of Interest on Capital
Calculation of Profit share of each partner
Profit after charging interest on capital = 1,60,000 – 32,500 = Rs 1,27,500
Z has been guaranteed Rs 80,000 profit for full year by X. The partnership firm was formed on October 01, 2015, this means for half year, the guaranteed profit should be Rs 40,000 only.
Deficiency = 40,000 (Guaranteed Profit) – 38,250 (Actual Profit)
= Rs 1,750 (to be borne by X)
Calculation of Final Profit share of each partner
Answer:
Profit and Loss Appropriation Account
for the year ended March 31, 2016
|
||||||||
Dr. | Cr. | |||||||
Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
|||||
Salary to Z | 24,000 | Profit and Loss A/c (Net Profit) | 75,000 | |||||
Interest on Capital: | Z’s Capital A/c | 5,000 | ||||||
X
|
10,000 | Interest on Drawings | ||||||
Y
|
7,500 |
X
|
500 | |||||
Z
|
5,000 | 22,500 |
Y
|
400 | ||||
Profit trsfd. to Partner’s Capital A/c |
Z
|
300 | 1,200 | |||||
X
|
17,350 | |||||||
Y
|
11,567 | |||||||
Z
|
5,783 | 34,700 | ||||||
81,200 | 81,200 | |||||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | ||
2016 | 2015 | ||||||||||
March 31 | Drawings | 10,000 | 8,000 | 6,000 | April 01 | Balance b/d | 1,00,000 | 75,000 | 50,000 | ||
March 31 | Interest on Drawings | 500 | 400 | 300 | 2016 | ||||||
March 31 | Profit & Loss App. A/c | 5,000 | March 31 | Interest on Capital | 10,000 | 7,500 | 5,000 | ||||
March 31 | Balance c/d | 1,16,850 | 85,667 | 73,483 | March 31 | Salary | 24,000 | ||||
March 31 | Profit & Loss App. A/c | 17,350 | 11,567 | 5,783 | |||||||
1,27,350 | 94,067 | 84,783 | 1,27,350 | 94,067 | 84,783 | ||||||
Note: Interest on drawings is calculated for an average period of six months because date of drawings is not given.
Page No 2.89:
Question 60:
Profit and Loss Appropriation Account
for the year ended March 31, 2016
|
||||||||
Dr. | Cr. | |||||||
Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
|||||
Salary to Z | 24,000 | Profit and Loss A/c (Net Profit) | 75,000 | |||||
Interest on Capital: | Z’s Capital A/c | 5,000 | ||||||
X
|
10,000 | Interest on Drawings | ||||||
Y
|
7,500 |
X
|
500 | |||||
Z
|
5,000 | 22,500 |
Y
|
400 | ||||
Profit trsfd. to Partner’s Capital A/c |
Z
|
300 | 1,200 | |||||
X
|
17,350 | |||||||
Y
|
11,567 | |||||||
Z
|
5,783 | 34,700 | ||||||
81,200 | 81,200 | |||||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | ||
2016 | 2015 | ||||||||||
March 31 | Drawings | 10,000 | 8,000 | 6,000 | April 01 | Balance b/d | 1,00,000 | 75,000 | 50,000 | ||
March 31 | Interest on Drawings | 500 | 400 | 300 | 2016 | ||||||
March 31 | Profit & Loss App. A/c | 5,000 | March 31 | Interest on Capital | 10,000 | 7,500 | 5,000 | ||||
March 31 | Balance c/d | 1,16,850 | 85,667 | 73,483 | March 31 | Salary | 24,000 | ||||
March 31 | Profit & Loss App. A/c | 17,350 | 11,567 | 5,783 | |||||||
1,27,350 | 94,067 | 84,783 | 1,27,350 | 94,067 | 84,783 | ||||||
Note: Interest on drawings is calculated for an average period of six months because date of drawings is not given.
Answer:
Profit and Loss Appropriation Account
for the year ended March 31,2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |||
Profit & Loss A/c (Net Loss) | 60,000 | Loss trsfd. to Partner’s Capital A/c | ||||
Cook
|
30,000 | |||||
Broad
|
20,000 | |||||
Prior
|
10,000 | 60,000 | ||||
60,000 | 60,000 | |||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | Cook | Broad | Prior | Date | Particulars | Cook | Broad | Prior | ||
2016 | 2015 | ||||||||||
March 31 | Profit & Loss App. A/c | 30,000 | 20,000 | 10,000 | April 01 | Balance b/d | 6,00,000 | 4,00,000 | 2,00,000 | ||
March 31 | Prior’s Cap. A/c | 66,000 | 44,000 | - | 2016 | ||||||
March 31 | Balance c/d | 5,04,000 | 3,36,000 | 3,00,000 | March 31 | Cook’s Cap. A/c | 66,000 | ||||
March 31 | Broad’s Cap. A/c | 44,000 | |||||||||
6,00,000 | 4,00,000 | 3,10,000 | 6,00,000 | 4,00,000 | 3,10,000 | ||||||
Page No 2.89:
Question 61:
Profit and Loss Appropriation Account
for the year ended March 31,2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |||
Profit & Loss A/c (Net Loss) | 60,000 | Loss trsfd. to Partner’s Capital A/c | ||||
Cook
|
30,000 | |||||
Broad
|
20,000 | |||||
Prior
|
10,000 | 60,000 | ||||
60,000 | 60,000 | |||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | Cook | Broad | Prior | Date | Particulars | Cook | Broad | Prior | ||
2016 | 2015 | ||||||||||
March 31 | Profit & Loss App. A/c | 30,000 | 20,000 | 10,000 | April 01 | Balance b/d | 6,00,000 | 4,00,000 | 2,00,000 | ||
March 31 | Prior’s Cap. A/c | 66,000 | 44,000 | - | 2016 | ||||||
March 31 | Balance c/d | 5,04,000 | 3,36,000 | 3,00,000 | March 31 | Cook’s Cap. A/c | 66,000 | ||||
March 31 | Broad’s Cap. A/c | 44,000 | |||||||||
6,00,000 | 4,00,000 | 3,10,000 | 6,00,000 | 4,00,000 | 3,10,000 | ||||||
Answer:
Profit and Loss Appropriation Account
for the year ended March 31,2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |||
Profit & Loss A/c (Net Loss) | 2,00,000 | Loss trsfd. to Partner’s Capital A/c | ||||
Dhoni
|
80,000 | |||||
Kohli
|
80,000 | |||||
Ishant
|
40,000 | 2,00,000 | ||||
2,00,000 | 2,00,000 | |||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | Dhoni | Kohli | Ishant | Date | Particulars | Dhoni | Kohli | Ishant | ||
2016 | 2015 | ||||||||||
March 31 | Profit & Loss App. A/c | 80,000 | 80,000 | 40,000 | April 01 | Balance b/d | 15,00,000 | 14,00,000 | 5,00,000 | ||
March 31 | Ishant’s Cap. A/c | 4,32,000 | 1,08,000 | 2016 | |||||||
March 31 | Balance c/d | 9,88,000 | 12,12,000 | 10,00,000 | March 31 | Dhoni’s Cap. A/c | 4,32,000 | ||||
March 31 | Kohli’s Cap. A/c | 1,08,000 | |||||||||
15,00,000 | 14,00,000 | 10,40,000 | 15,00,000 | 14,00,000 | 10,40,000 | ||||||
Page No 2.89:
Question 62:
Profit and Loss Appropriation Account
for the year ended March 31,2016
|
||||||
Dr. | Cr. | |||||
Particulars | Amount (Rs) | Particulars | Amount (Rs) | |||
Profit & Loss A/c (Net Loss) | 2,00,000 | Loss trsfd. to Partner’s Capital A/c | ||||
Dhoni
|
80,000 | |||||
Kohli
|
80,000 | |||||
Ishant
|
40,000 | 2,00,000 | ||||
2,00,000 | 2,00,000 | |||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | Dhoni | Kohli | Ishant | Date | Particulars | Dhoni | Kohli | Ishant | ||
2016 | 2015 | ||||||||||
March 31 | Profit & Loss App. A/c | 80,000 | 80,000 | 40,000 | April 01 | Balance b/d | 15,00,000 | 14,00,000 | 5,00,000 | ||
March 31 | Ishant’s Cap. A/c | 4,32,000 | 1,08,000 | 2016 | |||||||
March 31 | Balance c/d | 9,88,000 | 12,12,000 | 10,00,000 | March 31 | Dhoni’s Cap. A/c | 4,32,000 | ||||
March 31 | Kohli’s Cap. A/c | 1,08,000 | |||||||||
15,00,000 | 14,00,000 | 10,40,000 | 15,00,000 | 14,00,000 | 10,40,000 | ||||||
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Anu’s Capital A/c |
Dr. |
|
1,000 |
|
|
To Pankaj’s Capital A/c |
|
|
1,000 |
|
|
(Adjustment of omission of Interest on Capital) |
|
|
|
|
|
|
|
|
|
Working Note:
Statement Showing Adjustment |
|||
Particulars |
Pankaj |
Anu |
Total |
Interest on Capital to be credited |
3,000 |
1,000 |
4,000 |
Profit wrongly distributed equally to be debited |
(2,000) |
|
(4,000) |
Net Effect |
1,000 (Cr.) |
1,000 (Dr.) |
NIL |
|
|
|
|
Page No 2.89:
Question 63:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Anu’s Capital A/c |
Dr. |
|
1,000 |
|
|
To Pankaj’s Capital A/c |
|
|
1,000 |
|
|
(Adjustment of omission of Interest on Capital) |
|
|
|
|
|
|
|
|
|
Working Note:
Statement Showing Adjustment |
|||
Particulars |
Pankaj |
Anu |
Total |
Interest on Capital to be credited |
3,000 |
1,000 |
4,000 |
Profit wrongly distributed equally to be debited |
(2,000) |
|
(4,000) |
Net Effect |
1,000 (Cr.) |
1,000 (Dr.) |
NIL |
|
|
|
|
Answer:
Journal | ||||
Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
A’s Capital A/c | Dr. | 48,000 | ||
B’s Capital A/c | Dr. | 24,000 | ||
To C’s Capital A/c
|
72,000 | |||
(Adjustment entry passed) | ||||
B’s Capital A/c | Dr. | 24,000 | ||
To B’s Loan A/c
|
24,000 | |||
(Loan given by B from his Capital balance) | ||||
Statement Showing Adjustment | ||||
Particulars | A | B | C | Total |
Interest on B’s Loan @ 6% | 24,000 | 24,000 | ||
Profit to be distributed equally (6,00,000 – 24,000) | 1,92,000 | 1,92,000 | 1,92,000 | 5,76,000 |
Amount to be distributed | 1,92,000 | 2,16,000 | 1,92,000 | 6,00,000 |
Less: Profits wrongly distributed
|
2,40,000 | 2,40,000 | 1,20,000 | 6,00,000 |
Net Effect | (48,000)(Dr.) | (24,000)(Dr.) | 72,000 (Cr.) | NIL |
Note: B's Capital A/c in the first entry should be debited with 'Rs 24,000' and not 'Rs 48,000' as per the book.
Page No 2.89:
Question 64:
Journal | ||||
Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
A’s Capital A/c | Dr. | 48,000 | ||
B’s Capital A/c | Dr. | 24,000 | ||
To C’s Capital A/c
|
72,000 | |||
(Adjustment entry passed) | ||||
B’s Capital A/c | Dr. | 24,000 | ||
To B’s Loan A/c
|
24,000 | |||
(Loan given by B from his Capital balance) | ||||
Statement Showing Adjustment | ||||
Particulars | A | B | C | Total |
Interest on B’s Loan @ 6% | 24,000 | 24,000 | ||
Profit to be distributed equally (6,00,000 – 24,000) | 1,92,000 | 1,92,000 | 1,92,000 | 5,76,000 |
Amount to be distributed | 1,92,000 | 2,16,000 | 1,92,000 | 6,00,000 |
Less: Profits wrongly distributed
|
2,40,000 | 2,40,000 | 1,20,000 | 6,00,000 |
Net Effect | (48,000)(Dr.) | (24,000)(Dr.) | 72,000 (Cr.) | NIL |
Note: B's Capital A/c in the first entry should be debited with 'Rs 24,000' and not 'Rs 48,000' as per the book.
Answer:
Journal | ||||
Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
Y’s Current A/c | Dr. | 1,200 | ||
To X’s Current A/c
|
500 | |||
To Z’s Current A/c
|
700 | |||
(Interest on capital omitted, now provided) | ||||
Statement Showing Adjustment | ||||
Particulars | X | Y | Z | Total |
Interest on Capital to be provided @ 10%: | ||||
2011-12 | 2,000 | 1,600 | 1,400 | 5,000 |
2012-13 | 2,000 | 1,600 | 1,400 | 5,000 |
2013-14 | 2,000 | 1,600 | 1,400 | 5,000 |
Total | 6,000 | 4,800 | 4,200 | 15,000 |
Less: Profits wrongly distributed | ||||
2011-12 | 1,000 | 2,000 | 2,000 | 5,000 |
2012-13 | 2,500 | 1,500 | 1,000 | 5,000 |
2013-14 | 2,000 | 2,500 | 500 | 5,000 |
Total | 5,500 | 6,000 | 3,500 | 15,000 |
Net Effect | 500 (Cr.) | (1,200) (Dr.) | 700 (Cr.) | NIL |
Page No 2.89:
Question 65:
Journal | ||||
Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
Y’s Current A/c | Dr. | 1,200 | ||
To X’s Current A/c
|
500 | |||
To Z’s Current A/c
|
700 | |||
(Interest on capital omitted, now provided) | ||||
Statement Showing Adjustment | ||||
Particulars | X | Y | Z | Total |
Interest on Capital to be provided @ 10%: | ||||
2011-12 | 2,000 | 1,600 | 1,400 | 5,000 |
2012-13 | 2,000 | 1,600 | 1,400 | 5,000 |
2013-14 | 2,000 | 1,600 | 1,400 | 5,000 |
Total | 6,000 | 4,800 | 4,200 | 15,000 |
Less: Profits wrongly distributed | ||||
2011-12 | 1,000 | 2,000 | 2,000 | 5,000 |
2012-13 | 2,500 | 1,500 | 1,000 | 5,000 |
2013-14 | 2,000 | 2,500 | 500 | 5,000 |
Total | 5,500 | 6,000 | 3,500 | 15,000 |
Net Effect | 500 (Cr.) | (1,200) (Dr.) | 700 (Cr.) | NIL |
Answer:
Journal |
||||
Particulars |
L. F. |
Debit Amount Rs |
Credit Amount Rs |
|
Anil’s Capital A/c |
Dr. |
|
550 |
|
To Mohan’s Capital A/c |
|
|
550 |
|
(Interest on capital and interest on drawings was omitted, now adjusted) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Capital at the beginning
Particulars |
Mohan |
Vijay |
Anil |
Total |
Capital at the end |
30,000 |
25,000 |
20,000 |
75,000 |
Add: Drawings |
5,000 |
4,000 |
3,000 |
12,000 |
Less: Profit (1:1:1) |
(8,000) |
(8,000) |
(8,000) |
(24,000) |
Capital in the beginning |
27,000 |
21,000 |
15,000 |
63,000 |
|
|
|
|
|
WN 2 Calculation of Interest on Capital
WN 3
Statement Showing Adjustment |
||||
|
Mohan |
Vijay |
Anil |
Total |
Interest on Capital to be credited |
2,700 |
2,100 |
1,500 |
6,300 |
Less: Interest on Drawings |
(250) |
(200) |
(150) |
(600) |
Right Distribution of Rs 5,700 |
2,450 |
1,900 |
1,350 |
5,700 |
Wrong Distribution of Rs 5,700 (1:1:1) |
(1,900) |
(1,900) |
(1,900) |
(5,700) |
Net Effect |
550 |
Nil |
(550) |
NIL |
|
|
|
|
|
WN 4 Calculation of Final Profit Share of Partners
Total Corrected Profit Available for Distribution = Profit - Interest on Capital + Interest on Drawings = 24,000 - 6,300 + 600 = Rs 18,300
Page No 2.90:
Question 66:
Journal |
||||
Particulars |
L. F. |
Debit Amount Rs |
Credit Amount Rs |
|
Anil’s Capital A/c |
Dr. |
|
550 |
|
To Mohan’s Capital A/c |
|
|
550 |
|
(Interest on capital and interest on drawings was omitted, now adjusted) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Capital at the beginning
Particulars |
Mohan |
Vijay |
Anil |
Total |
Capital at the end |
30,000 |
25,000 |
20,000 |
75,000 |
Add: Drawings |
5,000 |
4,000 |
3,000 |
12,000 |
Less: Profit (1:1:1) |
(8,000) |
(8,000) |
(8,000) |
(24,000) |
Capital in the beginning |
27,000 |
21,000 |
15,000 |
63,000 |
|
|
|
|
|
WN 2 Calculation of Interest on Capital
WN 3
Statement Showing Adjustment |
||||
|
Mohan |
Vijay |
Anil |
Total |
Interest on Capital to be credited |
2,700 |
2,100 |
1,500 |
6,300 |
Less: Interest on Drawings |
(250) |
(200) |
(150) |
(600) |
Right Distribution of Rs 5,700 |
2,450 |
1,900 |
1,350 |
5,700 |
Wrong Distribution of Rs 5,700 (1:1:1) |
(1,900) |
(1,900) |
(1,900) |
(5,700) |
Net Effect |
550 |
Nil |
(550) |
NIL |
|
|
|
|
|
WN 4 Calculation of Final Profit Share of Partners
Total Corrected Profit Available for Distribution = Profit - Interest on Capital + Interest on Drawings = 24,000 - 6,300 + 600 = Rs 18,300
Answer:
Journal |
||||
Particulars |
L. F. |
Debit Amount Rs |
Credit Amount Rs |
|
Ram’s Capital A/c |
Dr. |
|
300 |
|
To Sohan’s Capital A/c |
|
|
300 |
|
(Interest on Capital was wrongly credited, now adjusted) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital at 6% p.a.
WN 2 Calculation of Interest on Capital at 5% p.a.
WN 3
Statement Showing Adjustment |
||||
Particulars |
Ram |
Mohan |
Sohan |
Total |
Interest on Capital wrongly credited at 6% p.a. reversed |
(7,200) |
(5,400) |
(3,600) |
(16,200) |
Interest on Capital credited at 5% p.a. |
6,000 |
4,500 |
3,000 |
13,500 |
Wrong Distribution |
(1,200) |
(900) |
(600) |
(2,700) |
Right Distribution of Rs 2,700 (1:1:1) |
900 |
900 |
900 |
(2,700) |
Net Effect |
(300) |
NIL |
300 |
NIL |
|
|
|
|
|
Page No 2.90:
Question 67:
Journal |
||||
Particulars |
L. F. |
Debit Amount Rs |
Credit Amount Rs |
|
Ram’s Capital A/c |
Dr. |
|
300 |
|
To Sohan’s Capital A/c |
|
|
300 |
|
(Interest on Capital was wrongly credited, now adjusted) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital at 6% p.a.
WN 2 Calculation of Interest on Capital at 5% p.a.
WN 3
Statement Showing Adjustment |
||||
Particulars |
Ram |
Mohan |
Sohan |
Total |
Interest on Capital wrongly credited at 6% p.a. reversed |
(7,200) |
(5,400) |
(3,600) |
(16,200) |
Interest on Capital credited at 5% p.a. |
6,000 |
4,500 |
3,000 |
13,500 |
Wrong Distribution |
(1,200) |
(900) |
(600) |
(2,700) |
Right Distribution of Rs 2,700 (1:1:1) |
900 |
900 |
900 |
(2,700) |
Net Effect |
(300) |
NIL |
300 |
NIL |
|
|
|
|
|
Answer:
Journal | ||||
Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
Z’s Current A/c | Dr. | 480 | ||
To X’s Current A/c
|
320 | |||
To Y’s Current A/c
|
160 | |||
(Profit previously omitted has been distributed correctly) | ||||
Statement Showing Adjustment | ||||
Particulars | X | Y | Z | Total |
Profit to be distributed: (Cr.) | ||||
2013-14 (4,800 in 5:3:2) | 2,400 | 1,440 | 960 | 4,800 |
2014-15 (4,800 in 2:2:1) | 1,920 | 1,920 | 960 | 4,800 |
Total | 4,320 | 3,360 | 1,920 | 9,600 |
Less: Interest on Capital wrongly provided @ 5% | ||||
2013-14 | 2,000 | 1,600 | 1,200 | 4,800 |
2014-15 | 2,000 | 1,600 | 1,200 | 4,800 |
Total | 4,000 | 3,200 | 2,400 | 9,600 |
Net effect | 320 (Cr.) | 160 (Cr.) | (480) (Dr.) | NIL |
Page No 2.90:
Question 68:
Journal | ||||
Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
Z’s Current A/c | Dr. | 480 | ||
To X’s Current A/c
|
320 | |||
To Y’s Current A/c
|
160 | |||
(Profit previously omitted has been distributed correctly) | ||||
Statement Showing Adjustment | ||||
Particulars | X | Y | Z | Total |
Profit to be distributed: (Cr.) | ||||
2013-14 (4,800 in 5:3:2) | 2,400 | 1,440 | 960 | 4,800 |
2014-15 (4,800 in 2:2:1) | 1,920 | 1,920 | 960 | 4,800 |
Total | 4,320 | 3,360 | 1,920 | 9,600 |
Less: Interest on Capital wrongly provided @ 5% | ||||
2013-14 | 2,000 | 1,600 | 1,200 | 4,800 |
2014-15 | 2,000 | 1,600 | 1,200 | 4,800 |
Total | 4,000 | 3,200 | 2,400 | 9,600 |
Net effect | 320 (Cr.) | 160 (Cr.) | (480) (Dr.) | NIL |
Answer:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
A’s Capital A/c |
Dr. |
|
1,500 |
|
B’s Capital A/c |
Dr. |
|
8,250 |
|
To C’s Capital A/c |
|
|
9,750 |
|
(Adjustment of profit made) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Profit available for Distribution
Profit available for distribution = Net Profit − Interest on Capital − Salary to C
= 45,000 − 5,000 − 18,000 = Rs 22,000
WN 3 Right Distribution of Rs 45,000
Particulars |
A |
B |
C |
Total |
Interest on Capital to be credited |
2,500 |
1,250 |
1,250 |
5,000 |
Salary to be credited |
|
|
18,000 |
18,000 |
Distribution of Profit Rs 22,000 |
11,000 |
5,500 |
5,500 |
22,000 |
Total Profit |
13,500 |
6,750 |
24,750 |
45,000 |
|
|
|
|
|
WN 4 Wrong Distribution of Rs 45,000 in equal Ratio
WN 5
Statement Showing Adjustment |
||||
Particulars |
A |
B |
C |
Total |
Right Distribution of Profit (WN 3) |
13,500 |
6,750 |
24,750 |
45,000 |
Wrong Distribution of Profit (WN 4) |
(15,000) |
(15,000) |
(15,000) |
(45,000) |
Net Effect |
(1,500) |
(8,250) |
9,750 |
NIL |
|
|
|
|
|
Page No 2.90:
Question 69:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
A’s Capital A/c |
Dr. |
|
1,500 |
|
B’s Capital A/c |
Dr. |
|
8,250 |
|
To C’s Capital A/c |
|
|
9,750 |
|
(Adjustment of profit made) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculation of Profit available for Distribution
Profit available for distribution = Net Profit − Interest on Capital − Salary to C
= 45,000 − 5,000 − 18,000 = Rs 22,000
WN 3 Right Distribution of Rs 45,000
Particulars |
A |
B |
C |
Total |
Interest on Capital to be credited |
2,500 |
1,250 |
1,250 |
5,000 |
Salary to be credited |
|
|
18,000 |
18,000 |
Distribution of Profit Rs 22,000 |
11,000 |
5,500 |
5,500 |
22,000 |
Total Profit |
13,500 |
6,750 |
24,750 |
45,000 |
|
|
|
|
|
WN 4 Wrong Distribution of Rs 45,000 in equal Ratio
WN 5
Statement Showing Adjustment |
||||
Particulars |
A |
B |
C |
Total |
Right Distribution of Profit (WN 3) |
13,500 |
6,750 |
24,750 |
45,000 |
Wrong Distribution of Profit (WN 4) |
(15,000) |
(15,000) |
(15,000) |
(45,000) |
Net Effect |
(1,500) |
(8,250) |
9,750 |
NIL |
|
|
|
|
|
Answer:
Journal | ||||
Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
X’s Current A/c | Dr. | 18,375 | ||
To Y’s Current A/c
|
4,650 | |||
To Z’s Current A/c
|
13,725 | |||
(Adjustment entry passed) | ||||
Statement Showing Adjustment | ||||
Particulars | X | Y | Z | Total |
Interest on Capital @ 5% | 7,500 | 5,000 | 2,500 | 15,000 |
Salary to Y | 30,000 | 30,000 | ||
Commission to Z (WN) | 6,750 | 6,750 | ||
Profits to be distributed in 5 : 2 : 3 | 49,125 | 19,650 | 29,475 | 98,250 |
Total | 56,625 | 54,650 | 38,725 | 1,50,000 |
Less: Profits wrongly distributed | 75,000 | 50,000 | 25,000 | 1,50,000 |
Net effect | (18,375) (Dr.) | 4,650 (Cr.) | 13,725 (Cr.) | NIL |
Working Notes: Calculation of Commission
Profit after charging interest on capital = 1,50,000 – 15,000 = Rs 1,35,000
Page No 2.90:
Question 70:
Journal | ||||
Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
X’s Current A/c | Dr. | 18,375 | ||
To Y’s Current A/c
|
4,650 | |||
To Z’s Current A/c
|
13,725 | |||
(Adjustment entry passed) | ||||
Statement Showing Adjustment | ||||
Particulars | X | Y | Z | Total |
Interest on Capital @ 5% | 7,500 | 5,000 | 2,500 | 15,000 |
Salary to Y | 30,000 | 30,000 | ||
Commission to Z (WN) | 6,750 | 6,750 | ||
Profits to be distributed in 5 : 2 : 3 | 49,125 | 19,650 | 29,475 | 98,250 |
Total | 56,625 | 54,650 | 38,725 | 1,50,000 |
Less: Profits wrongly distributed | 75,000 | 50,000 | 25,000 | 1,50,000 |
Net effect | (18,375) (Dr.) | 4,650 (Cr.) | 13,725 (Cr.) | NIL |
Working Notes: Calculation of Commission
Profit after charging interest on capital = 1,50,000 – 15,000 = Rs 1,35,000
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Ram’s Capital A/c |
Dr. |
|
100 |
|
|
To Mohan’s Capital A/c |
|
|
100 |
|
|
(Interest on Capital was omitted, now adjusted) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
Particulars |
Ram |
Mohan |
Total |
Interest on Capital to be credited |
200 |
400 |
600 |
For sharing above Loss (1:1) |
(300) |
(300) |
(600) |
Net Effect |
(100) |
(100) |
Nil |
(Dr.) |
(Cr.) |
||
|
|
Page No 2.90:
Question 71:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Ram’s Capital A/c |
Dr. |
|
100 |
|
|
To Mohan’s Capital A/c |
|
|
100 |
|
|
(Interest on Capital was omitted, now adjusted) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
Particulars |
Ram |
Mohan |
Total |
Interest on Capital to be credited |
200 |
400 |
600 |
For sharing above Loss (1:1) |
(300) |
(300) |
(600) |
Net Effect |
(100) |
(100) |
Nil |
(Dr.) |
(Cr.) |
||
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L. F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Q’s Capital A/c |
Dr. |
|
4,000 |
|
|
R’s Capital A/c |
Dr. |
|
1,000 |
|
|
To P’s Capital A/c |
|
|
5,000 |
|
|
(Interest on Capital was omitted, now adjusted) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
||||||||
Dr. |
Cr. |
|||||||
Particulars |
P |
Q |
R |
Particulars |
P |
Q |
R |
|
P’s Capital |
|
4,000 |
1,000 |
Balance b/d |
1,50,000 |
1,80,000 |
2,10,000 |
|
|
|
|
|
Q’s Capital |
4,000 |
|
|
|
Balance c/d |
1,55,000 |
1,76,000 |
2,09,000 |
R’s Capital |
1,000 |
|
|
|
|
1,55,000 |
1,80,000 |
2,10,000 |
|
1,55,000 |
1,80,000 |
2,10,000 |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Capital as on April 01, 2015 (Opening Capital)
Particulars |
P |
Q |
R |
Total |
Capital as on March 31, 2016 (Closing) |
1,50,000 |
1,80,000 |
2,10,000 |
5,40,000 |
Add: Drawings |
20,000 |
20,000 |
20,000 |
60,000 |
Less: Profit (1 : 2 : 2) |
(12,000) |
(24,000) |
(24,000) |
(60,000) |
Capital as April 01, 2015 (Opening) |
1,58,000 |
1,76,000 |
2,06,000 |
5,40,000 |
|
|
|
|
|
WN 2 Calculation of Interest on Capital
WN 4
Statement Showing Adjustment |
||||
Particulars |
P |
Q |
R |
Total |
Interest on Capital to be credited |
15,800 |
17,600 |
20,600 |
54,000 |
For sharing above Loss (1 : 2 : 2) |
(10,800) |
(21,600) |
(21,600) |
(54,000) |
Net Effect |
5,000 (Cr.) |
(4,000) (Dr.) |
(1,000) (Dr.) |
(NIL) |
|
|
|
|
|
Page No 2.90:
Question 72:
Journal |
|||||
Date |
Particulars |
L. F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Q’s Capital A/c |
Dr. |
|
4,000 |
|
|
R’s Capital A/c |
Dr. |
|
1,000 |
|
|
To P’s Capital A/c |
|
|
5,000 |
|
|
(Interest on Capital was omitted, now adjusted) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
||||||||
Dr. |
Cr. |
|||||||
Particulars |
P |
Q |
R |
Particulars |
P |
Q |
R |
|
P’s Capital |
|
4,000 |
1,000 |
Balance b/d |
1,50,000 |
1,80,000 |
2,10,000 |
|
|
|
|
|
Q’s Capital |
4,000 |
|
|
|
Balance c/d |
1,55,000 |
1,76,000 |
2,09,000 |
R’s Capital |
1,000 |
|
|
|
|
1,55,000 |
1,80,000 |
2,10,000 |
|
1,55,000 |
1,80,000 |
2,10,000 |
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Capital as on April 01, 2015 (Opening Capital)
Particulars |
P |
Q |
R |
Total |
Capital as on March 31, 2016 (Closing) |
1,50,000 |
1,80,000 |
2,10,000 |
5,40,000 |
Add: Drawings |
20,000 |
20,000 |
20,000 |
60,000 |
Less: Profit (1 : 2 : 2) |
(12,000) |
(24,000) |
(24,000) |
(60,000) |
Capital as April 01, 2015 (Opening) |
1,58,000 |
1,76,000 |
2,06,000 |
5,40,000 |
|
|
|
|
|
WN 2 Calculation of Interest on Capital
WN 4
Statement Showing Adjustment |
||||
Particulars |
P |
Q |
R |
Total |
Interest on Capital to be credited |
15,800 |
17,600 |
20,600 |
54,000 |
For sharing above Loss (1 : 2 : 2) |
(10,800) |
(21,600) |
(21,600) |
(54,000) |
Net Effect |
5,000 (Cr.) |
(4,000) (Dr.) |
(1,000) (Dr.) |
(NIL) |
|
|
|
|
|
Answer:
Journal |
||||
Particulars |
L. F. |
Debit Amount Rs |
Credit Amount Rs |
|
Sohan’s Capital A/c |
Dr. |
|
300 |
|
To Ram’s Capital A/c |
|
|
300 |
|
(Interest on Capital was wrongly credited, now adjusted) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital at 6% p.a.
WN 2 Calculation of Interest on Capital at 5% p.a.
WN 3
Statement Showing Adjustment |
||||
Particulars |
Ram |
Mohan |
Sohan |
Total |
Interest on Capital wrongly credited at 5% p.a. reversed |
(6,000) |
(4,500) |
(3,000) |
(13,500) |
Interest on Capital credited at 6% p.a. |
7,200 |
5,400 |
3,600 |
16,200 |
Right Distribution |
1,200 |
900 |
600 |
2,700 |
Wrong Distribution of Rs 2,700 |
(900) |
(900) |
(900) |
(2,700) |
Net Effect |
300 |
NIL |
(300) |
NIL |
|
|
|
|
|
Page No 2.90:
Question 73:
Journal |
||||
Particulars |
L. F. |
Debit Amount Rs |
Credit Amount Rs |
|
Sohan’s Capital A/c |
Dr. |
|
300 |
|
To Ram’s Capital A/c |
|
|
300 |
|
(Interest on Capital was wrongly credited, now adjusted) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital at 6% p.a.
WN 2 Calculation of Interest on Capital at 5% p.a.
WN 3
Statement Showing Adjustment |
||||
Particulars |
Ram |
Mohan |
Sohan |
Total |
Interest on Capital wrongly credited at 5% p.a. reversed |
(6,000) |
(4,500) |
(3,000) |
(13,500) |
Interest on Capital credited at 6% p.a. |
7,200 |
5,400 |
3,600 |
16,200 |
Right Distribution |
1,200 |
900 |
600 |
2,700 |
Wrong Distribution of Rs 2,700 |
(900) |
(900) |
(900) |
(2,700) |
Net Effect |
300 |
NIL |
(300) |
NIL |
|
|
|
|
|
Answer:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Shyam’s Current A/c |
Dr. |
|
200 |
|
Mohan’s Current A/c |
Dr. |
|
400 |
|
To Ram’s Current A/c |
|
|
600 |
|
(Interest on Capital adjusted) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital 10% p.a.
WN 2 Calculation of Interest on Capital 9% p.a.
WN 3
Statement Showing Adjustment |
||||
Particulars |
Ram |
Shyam |
Mohan |
Total |
Interest on Capital credited at 10% p.a. |
30,000 |
10,000 |
20,000 |
60,000 |
Interest on Capital wrongly credited at 9% p.a. reversed |
(27,000) |
(9,000) |
(18,000) |
(54,000) |
Right distribution |
3,000 |
1,000 |
2,000 |
6,000 |
Wrong distribution of Rs 6,000 (2 : 1 : 2) |
(2,400) |
(1,200) |
(2,400) |
(6,000) |
Net Effect |
600 |
(200) |
(400) |
NIL |
|
|
|
|
|
Page No 2.91:
Question 74:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Shyam’s Current A/c |
Dr. |
|
200 |
|
Mohan’s Current A/c |
Dr. |
|
400 |
|
To Ram’s Current A/c |
|
|
600 |
|
(Interest on Capital adjusted) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital 10% p.a.
WN 2 Calculation of Interest on Capital 9% p.a.
WN 3
Statement Showing Adjustment |
||||
Particulars |
Ram |
Shyam |
Mohan |
Total |
Interest on Capital credited at 10% p.a. |
30,000 |
10,000 |
20,000 |
60,000 |
Interest on Capital wrongly credited at 9% p.a. reversed |
(27,000) |
(9,000) |
(18,000) |
(54,000) |
Right distribution |
3,000 |
1,000 |
2,000 |
6,000 |
Wrong distribution of Rs 6,000 (2 : 1 : 2) |
(2,400) |
(1,200) |
(2,400) |
(6,000) |
Net Effect |
600 |
(200) |
(400) |
NIL |
|
|
|
|
|
Answer:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Shiv’s Current A/c |
Dr. |
|
6,636 |
|
To Shanker’s Current A/c |
|
|
6,636 |
|
(Interest on Capital and Interest on drawings was omitted, now adjusted) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculating of Interest on Drawings
WN 3
Statement Showing Adjustment |
|||
Particulars |
Shiv |
Shanker |
Total |
Interest on Capital (to be credited) |
20,400 |
25,200 |
45,600 |
Interest Drawings (to be debited) |
(1,620) |
(1,620) |
(3,240) |
Right Distribution |
18,780 |
23,580 |
42,360 |
Wrong Distribution (3 : 2) |
(25,416) |
(16,944) |
(42,360) |
Net Effect |
(6,636) |
6,636 |
NIL |
|
|
|
|
Page No 2.91:
Question 75:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
Shiv’s Current A/c |
Dr. |
|
6,636 |
|
To Shanker’s Current A/c |
|
|
6,636 |
|
(Interest on Capital and Interest on drawings was omitted, now adjusted) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Calculating of Interest on Drawings
WN 3
Statement Showing Adjustment |
|||
Particulars |
Shiv |
Shanker |
Total |
Interest on Capital (to be credited) |
20,400 |
25,200 |
45,600 |
Interest Drawings (to be debited) |
(1,620) |
(1,620) |
(3,240) |
Right Distribution |
18,780 |
23,580 |
42,360 |
Wrong Distribution (3 : 2) |
(25,416) |
(16,944) |
(42,360) |
Net Effect |
(6,636) |
6,636 |
NIL |
|
|
|
|
Answer:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
A’s Current A/c |
Dr. |
|
3,675 |
|
To B’s Current A/c |
|
|
2,895 |
|
To C’s Current A/c |
|
|
780 |
|
(Adjustment of profit made) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Salary to B = Rs 500 × 12 = Rs 6,000
WN 3 Calculation of Commission to C
Commission to C = 5% on profit after interest on capital but before salary
Profit after Interest on Capital but before Salary = 30,000 − 3,000 = Rs 27,000
WN 4 Calculation of Profit Share of each Partner
Profit available for Distribution = 30,000 − 3,000 − 6,000 − 1,350 = Rs 19,650
WN 5
Statement Showing Adjustment |
||||
Particulars |
A |
B |
C |
Total |
Interest on Capital (to be credited) |
1,500 |
1,000 |
500 |
3,000 |
Salary/ Commission (to be credited) |
- |
6,000 |
1,350 |
7,350 |
Profit (to be credited) |
9,825 |
5,895 |
3,930 |
19,650 |
Right Distribution |
11,325 |
12,895 |
5,780 |
30,000 |
Wrong Distribution of Rs 30,000 (3 : 2 : 1) |
(15,000) |
(10,000) |
(5,000) |
(30,000) |
Net Effect |
(3,675) |
2,895 |
780 |
NIL |
|
|
|
|
|
Page No 2.91:
Question 76:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
A’s Current A/c |
Dr. |
|
3,675 |
|
To B’s Current A/c |
|
|
2,895 |
|
To C’s Current A/c |
|
|
780 |
|
(Adjustment of profit made) |
|
|
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Interest on Capital
WN 2 Salary to B = Rs 500 × 12 = Rs 6,000
WN 3 Calculation of Commission to C
Commission to C = 5% on profit after interest on capital but before salary
Profit after Interest on Capital but before Salary = 30,000 − 3,000 = Rs 27,000
WN 4 Calculation of Profit Share of each Partner
Profit available for Distribution = 30,000 − 3,000 − 6,000 − 1,350 = Rs 19,650
WN 5
Statement Showing Adjustment |
||||
Particulars |
A |
B |
C |
Total |
Interest on Capital (to be credited) |
1,500 |
1,000 |
500 |
3,000 |
Salary/ Commission (to be credited) |
- |
6,000 |
1,350 |
7,350 |
Profit (to be credited) |
9,825 |
5,895 |
3,930 |
19,650 |
Right Distribution |
11,325 |
12,895 |
5,780 |
30,000 |
Wrong Distribution of Rs 30,000 (3 : 2 : 1) |
(15,000) |
(10,000) |
(5,000) |
(30,000) |
Net Effect |
(3,675) |
2,895 |
780 |
NIL |
|
|
|
|
|
Answer:
Journal | ||||
Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
Sam’s Capital A/c | Dr. | 9,275 | ||
To Alex’s Capital A/c
|
1,275 | |||
To John’s Capital A/c
|
8,000 | |||
(Adjustment entry passed) | ||||
Statement Showing Adjustment | ||||
Particulars | Alex | John | Sam | Total |
Interest on Capital @ 10% | 10,000 | 8,000 | 6,000 | 24,000 |
Salary to John | 12,000 | 12,000 | ||
Interest on Drawings @ 4% | (100) | (100) | (100) | (300) |
Profits to be distributed in 5 : 4 : 3 | 16,375 | 13,100 | 9,825 | 39,300 |
Total | 26,275 | 33,000 | 15,725 | 75,000 |
Less: Profits wrongly distributed equally | 25,000 | 25,000 | 25,000 | 75,000 |
Net effect | 1,275 (Cr.) | 8,000 (Cr.) | (9,275) (Dr.) | NIL |
Page No 2.91:
Question 77:
Journal | ||||
Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
Sam’s Capital A/c | Dr. | 9,275 | ||
To Alex’s Capital A/c
|
1,275 | |||
To John’s Capital A/c
|
8,000 | |||
(Adjustment entry passed) | ||||
Statement Showing Adjustment | ||||
Particulars | Alex | John | Sam | Total |
Interest on Capital @ 10% | 10,000 | 8,000 | 6,000 | 24,000 |
Salary to John | 12,000 | 12,000 | ||
Interest on Drawings @ 4% | (100) | (100) | (100) | (300) |
Profits to be distributed in 5 : 4 : 3 | 16,375 | 13,100 | 9,825 | 39,300 |
Total | 26,275 | 33,000 | 15,725 | 75,000 |
Less: Profits wrongly distributed equally | 25,000 | 25,000 | 25,000 | 75,000 |
Net effect | 1,275 (Cr.) | 8,000 (Cr.) | (9,275) (Dr.) | NIL |
Answer:
Adjusting Entry
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount |
Credit Amount |
|
|
A’s Capital A/c |
Dr. |
|
8,500 |
|
|
To B’s Capital A/c |
|
4,500 |
||
|
To C’s Capital A/c |
|
|
4,000 |
|
|
(Adjustment entry is made) |
|
|
|
|
Particulars |
A |
B |
C |
Total |
Salary to A & B (Cr.) |
1,500 |
1,500 |
- |
(3,000) |
Commission to B (Cr.) |
- |
4,500 |
- |
(4,500) |
Profit guaranteed to be shared (WN1) (Cr.) |
35,000 |
28,500 |
19,000 |
(82,500) |
|
36,500 |
34,500 |
19,000 |
(90,000) |
Profits wrongly distributed among the partners (Dr.) |
(45,000) |
(30,000) |
(15,000) |
90,000 |
Net Effect |
8,500(Dr.) |
4,500 (Cr.) |
4,000 (Cr.) |
Nil |
|
|
|
|
|
Working Notes:
WN1: Profit remained to be distributed among the partners
Guaranteed amount of profit to A by B and C = Rs 35,000
Deficiency = 35,000 – 30,938 = Rs 4,062
It is to be borne by B and C in their profit sharing ratio i.e. 3:2
Thus,
A’s share of profit = 30,938 + 4,062 = Rs 35,000
B’s share of profit = 30,937–2,437 = Rs 28,500
C’s share of profit = 20,625–1,625 = Rs 19,000
Page No 2.92:
Question 78:
Adjusting Entry
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount |
Credit Amount |
|
|
A’s Capital A/c |
Dr. |
|
8,500 |
|
|
To B’s Capital A/c |
|
4,500 |
||
|
To C’s Capital A/c |
|
|
4,000 |
|
|
(Adjustment entry is made) |
|
|
|
|
Particulars |
A |
B |
C |
Total |
Salary to A & B (Cr.) |
1,500 |
1,500 |
- |
(3,000) |
Commission to B (Cr.) |
- |
4,500 |
- |
(4,500) |
Profit guaranteed to be shared (WN1) (Cr.) |
35,000 |
28,500 |
19,000 |
(82,500) |
|
36,500 |
34,500 |
19,000 |
(90,000) |
Profits wrongly distributed among the partners (Dr.) |
(45,000) |
(30,000) |
(15,000) |
90,000 |
Net Effect |
8,500(Dr.) |
4,500 (Cr.) |
4,000 (Cr.) |
Nil |
|
|
|
|
|
Working Notes:
WN1: Profit remained to be distributed among the partners
Guaranteed amount of profit to A by B and C = Rs 35,000
Deficiency = 35,000 – 30,938 = Rs 4,062
It is to be borne by B and C in their profit sharing ratio i.e. 3:2
Thus,
A’s share of profit = 30,938 + 4,062 = Rs 35,000
B’s share of profit = 30,937–2,437 = Rs 28,500
C’s share of profit = 20,625–1,625 = Rs 19,000
Answer:
Adjusting Entry
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount |
Credit Amount |
|
|
X’s Capital A/c |
Dr. |
|
2,530 |
|
|
To Y’s Capital A/c |
|
1,005 |
||
|
To Z’s Capital A/c |
|
|
1,525 |
|
|
(Adjustment entry is made) |
|
|
|
|
Working Notes:
Particulars |
X |
Y |
Z |
Total |
Wrongly Credited |
|
|
|
|
Interest on Capital for 2013-14 (Dr.) |
(3,250) |
(2,100) |
(900) |
6,250 |
Interest on Capital for 2014-15 (Dr.) |
(3,500) |
(2,000) |
(1,100) |
6,600 |
Interest on Capital for 2015-16 (Dr.) |
(3,600) |
(2,150) |
(1,100) |
6,850 |
|
(10,350) |
(6,250) |
(3,100) |
19,700 |
Right Distribution |
|
|
|
|
Profit distribution in 5 : 3 : 2 (Cr.) |
3,125 |
1,875 |
1,250 |
(6,250) |
Profit distribution in 2 : 2 : 1 (Cr.) |
2,640 |
2,640 |
1,320 |
(6,600) |
Profit distribution in 3 : 4 : 3 (Cr.) |
2,055 |
2,740 |
2,055 |
(6,850) |
|
7,820 |
7,255 |
4,625 |
(19,700) |
Net Effect |
2,530 (Dr.) |
1,005 (Cr.) |
1,525 (Cr.) |
NIL |
Page No 2.92:
Question 79:
Adjusting Entry
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount |
Credit Amount |
|
|
X’s Capital A/c |
Dr. |
|
2,530 |
|
|
To Y’s Capital A/c |
|
1,005 |
||
|
To Z’s Capital A/c |
|
|
1,525 |
|
|
(Adjustment entry is made) |
|
|
|
|
Working Notes:
Particulars |
X |
Y |
Z |
Total |
Wrongly Credited |
|
|
|
|
Interest on Capital for 2013-14 (Dr.) |
(3,250) |
(2,100) |
(900) |
6,250 |
Interest on Capital for 2014-15 (Dr.) |
(3,500) |
(2,000) |
(1,100) |
6,600 |
Interest on Capital for 2015-16 (Dr.) |
(3,600) |
(2,150) |
(1,100) |
6,850 |
|
(10,350) |
(6,250) |
(3,100) |
19,700 |
Right Distribution |
|
|
|
|
Profit distribution in 5 : 3 : 2 (Cr.) |
3,125 |
1,875 |
1,250 |
(6,250) |
Profit distribution in 2 : 2 : 1 (Cr.) |
2,640 |
2,640 |
1,320 |
(6,600) |
Profit distribution in 3 : 4 : 3 (Cr.) |
2,055 |
2,740 |
2,055 |
(6,850) |
|
7,820 |
7,255 |
4,625 |
(19,700) |
Net Effect |
2,530 (Dr.) |
1,005 (Cr.) |
1,525 (Cr.) |
NIL |
Answer:
Profit and Loss Appropriation Account
for the year ended…
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs |
Particulars | Amount Rs |
|||
Interest on Capital (WN2) | Profit and Loss A/c | 12,11,600 | ||||
X
|
60,000 | (11,20,000 + 91,600) | ||||
Y
|
60,000 | Interest on Drawings (WN1) | ||||
Z
|
60,000 | 1,80,000 |
X
|
26,000 | ||
Salary to: |
Y
|
30,000 | ||||
X
|
3,84,000 |
Z
|
33,000 | 89,000 | ||
Z
|
2,88,000 | 6,72,000 | ||||
Commission to X | 89,600 | |||||
Profit transferred to: | ||||||
X’s Capital A/c
|
1,19,666 | |||||
Y’s Capital A/c
|
1,19,667 | |||||
Z’s Capital A/c
|
1,19,667 | 3,59,000 | ||||
13,00,600 | 13,00,600 | |||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | ||
2013 | 2013 | ||||||||||
April 01 | Cash/Bank A/c | 80,000 | April 01 | Balance b/d | 6,40,000 | 6,00,000 | 5,60,000 | ||||
2014 | April 01 | Cash/Bank A/c | 80,000 | ||||||||
March 31 | Balance c/d | 5,60,000 | 6,00,000 | 6,40,000 | |||||||
6,40,000 | 6,00,000 | 6,40,000 | 6,40,000 | 6,00,000 | 6,40,000 | ||||||
Partners’ Current Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | ||
2013 | 2013 | ||||||||||
April 01 | Balance b/d | 20,000 | April 01 | Balance b/d | 3,40,000 | 3,20,000 | |||||
2014 | 2014 | ||||||||||
March 31 | Drawings A/c | 4,80,000 | 6,00,000 | 7,20,000 | March 31 | Interest on Capital A/c | 60,000 | 60,000 | 60,000 | ||
March 31 | Interest on Drawings A/c | 26,000 | 30,000 | 33,000 | March 31 | Salary | 3,84,000 | 2,88,000 | |||
March 31 | Balance c/d | 1,27,266 | 34,667 | March 31 | Commission | 89,600 | |||||
March 31 | P&L Appr. A/c | 1,19,666 | 1,19,667 | 1,19,667 | |||||||
March 31 | Balance c/d | 1,10,333 | |||||||||
6,53,266 | 6,30,000 | 7,87,667 | 6,53,266 | 6,30,000 | 7,87,667 | ||||||
Working Notes:
WN 1: Calculation of Interest on Drawings
WN 2: Calculation of Interest on Capital
Interest (1st April – 1st Oct.) | Interest (1st Oct. – 31st March) | Total |
Rs 60,000 | ||
Rs 60,000 | ||
Rs 60,000 |
Page No 2.92:
Question 80:
Profit and Loss Appropriation Account
for the year ended…
|
||||||
Dr. | Cr. | |||||
Particulars | Amount Rs |
Particulars | Amount Rs |
|||
Interest on Capital (WN2) | Profit and Loss A/c | 12,11,600 | ||||
X
|
60,000 | (11,20,000 + 91,600) | ||||
Y
|
60,000 | Interest on Drawings (WN1) | ||||
Z
|
60,000 | 1,80,000 |
X
|
26,000 | ||
Salary to: |
Y
|
30,000 | ||||
X
|
3,84,000 |
Z
|
33,000 | 89,000 | ||
Z
|
2,88,000 | 6,72,000 | ||||
Commission to X | 89,600 | |||||
Profit transferred to: | ||||||
X’s Capital A/c
|
1,19,666 | |||||
Y’s Capital A/c
|
1,19,667 | |||||
Z’s Capital A/c
|
1,19,667 | 3,59,000 | ||||
13,00,600 | 13,00,600 | |||||
Partners’ Capital Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | ||
2013 | 2013 | ||||||||||
April 01 | Cash/Bank A/c | 80,000 | April 01 | Balance b/d | 6,40,000 | 6,00,000 | 5,60,000 | ||||
2014 | April 01 | Cash/Bank A/c | 80,000 | ||||||||
March 31 | Balance c/d | 5,60,000 | 6,00,000 | 6,40,000 | |||||||
6,40,000 | 6,00,000 | 6,40,000 | 6,40,000 | 6,00,000 | 6,40,000 | ||||||
Partners’ Current Accounts | |||||||||||
Dr. | Cr. | ||||||||||
Date | Particulars | X | Y | Z | Date | Particulars | X | Y | Z | ||
2013 | 2013 | ||||||||||
April 01 | Balance b/d | 20,000 | April 01 | Balance b/d | 3,40,000 | 3,20,000 | |||||
2014 | 2014 | ||||||||||
March 31 | Drawings A/c | 4,80,000 | 6,00,000 | 7,20,000 | March 31 | Interest on Capital A/c | 60,000 | 60,000 | 60,000 | ||
March 31 | Interest on Drawings A/c | 26,000 | 30,000 | 33,000 | March 31 | Salary | 3,84,000 | 2,88,000 | |||
March 31 | Balance c/d | 1,27,266 | 34,667 | March 31 | Commission | 89,600 | |||||
March 31 | P&L Appr. A/c | 1,19,666 | 1,19,667 | 1,19,667 | |||||||
March 31 | Balance c/d | 1,10,333 | |||||||||
6,53,266 | 6,30,000 | 7,87,667 | 6,53,266 | 6,30,000 | 7,87,667 | ||||||
Working Notes:
WN 1: Calculation of Interest on Drawings
WN 2: Calculation of Interest on Capital
Interest (1st April – 1st Oct.) | Interest (1st Oct. – 31st March) | Total |
Rs 60,000 | ||
Rs 60,000 | ||
Rs 60,000 |
Answer:
Profit and Loss Appropriation Account
for the year ended March 31,2016
|
||||||||
Dr. | Cr. | |||||||
Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
|||||
Interest on Capital | Profit & Loss A/c (Net Profit) | 2,45,000 | ||||||
X
|
64,750 | Interest on Drawings | ||||||
Y
|
39,375 | 1,04,125 |
X
|
4,200 | ||||
Profit trsfd. to Partner’s Cap. A/c |
Y
|
2,742 | 6,942 | |||||
X
|
88,690 | |||||||
Y
|
59,127 | 1,47,817 | ||||||
2,51,942 | 2,51,942 | |||||||
Partners’ Capital Account | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | X | Y | Date | Particulars | X | Y | ||
2015 | 2015 | ||||||||
Oct. 01 | Furniture A/c | 1,40,000 | - | April 01 | Balance b/d | 7,00,000 | 3,50,000 | ||
2016 | Oct. 01 | Furniture A/c | - | 87,500 | |||||
March 31 | Balance c/d | 6,30,000 | 4,37,500 | 2016 | |||||
Jan. 01 | Stock A/c | 70,000 | - | ||||||
7,70,000 | 4,37,500 | 7,70,000 | 4,37,500 | ||||||
Partners’ Current Account | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | X | Y | Date | Particulars | X | Y | ||
2015 | |||||||||
Drawings A/c | 98,000 | 42,000 | April 01 | Balance b/d | 1,75,000 | 70,000 | |||
2016 | 2016 | ||||||||
Feb. 01 | Stock A/c | - | 17,500 | March 31 | Interest on Capital | 64,750 | 39,375 | ||
March 31 | Interest on Drawings | 4,200 | 2,742 | March 31 | Profit & Loss App. A/c | 88,690 | 59,127 | ||
March 31 | Balance c/d | 2,26,240 | 1,06,260 | ||||||
3,28,440 | 1,68,502 | 3,28,440 | 1,68,502 | ||||||
Working Notes:
WN 1: Calculation of Interest on Capital
WN 2: Calculation of Interest of Drawings
For X | |||
Date | Amount | Months | Product |
July 01, 2015 | 35,000 | 9 | 3,15,000 |
Jan. 01, 2016 | 63,000 | 3 | 1,89,000 |
5,04,000 | |||
For Y | |||
Date | Amount | Months | Product |
July 01, 2015 | 28,000 | 9 | 2,52,000 |
Jan. 01, 2016 | 14,000 | 3 | 42,000 |
Feb. 01, 2016 | 17,500 | 2 | 35,000 |
3,29,000 | |||
Page No 2.93:
Question 81:
Profit and Loss Appropriation Account
for the year ended March 31,2016
|
||||||||
Dr. | Cr. | |||||||
Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
|||||
Interest on Capital | Profit & Loss A/c (Net Profit) | 2,45,000 | ||||||
X
|
64,750 | Interest on Drawings | ||||||
Y
|
39,375 | 1,04,125 |
X
|
4,200 | ||||
Profit trsfd. to Partner’s Cap. A/c |
Y
|
2,742 | 6,942 | |||||
X
|
88,690 | |||||||
Y
|
59,127 | 1,47,817 | ||||||
2,51,942 | 2,51,942 | |||||||
Partners’ Capital Account | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | X | Y | Date | Particulars | X | Y | ||
2015 | 2015 | ||||||||
Oct. 01 | Furniture A/c | 1,40,000 | - | April 01 | Balance b/d | 7,00,000 | 3,50,000 | ||
2016 | Oct. 01 | Furniture A/c | - | 87,500 | |||||
March 31 | Balance c/d | 6,30,000 | 4,37,500 | 2016 | |||||
Jan. 01 | Stock A/c | 70,000 | - | ||||||
7,70,000 | 4,37,500 | 7,70,000 | 4,37,500 | ||||||
Partners’ Current Account | |||||||||
Dr. | Cr. | ||||||||
Date | Particulars | X | Y | Date | Particulars | X | Y | ||
2015 | |||||||||
Drawings A/c | 98,000 | 42,000 | April 01 | Balance b/d | 1,75,000 | 70,000 | |||
2016 | 2016 | ||||||||
Feb. 01 | Stock A/c | - | 17,500 | March 31 | Interest on Capital | 64,750 | 39,375 | ||
March 31 | Interest on Drawings | 4,200 | 2,742 | March 31 | Profit & Loss App. A/c | 88,690 | 59,127 | ||
March 31 | Balance c/d | 2,26,240 | 1,06,260 | ||||||
3,28,440 | 1,68,502 | 3,28,440 | 1,68,502 | ||||||
Working Notes:
WN 1: Calculation of Interest on Capital
WN 2: Calculation of Interest of Drawings
For X | |||
Date | Amount | Months | Product |
July 01, 2015 | 35,000 | 9 | 3,15,000 |
Jan. 01, 2016 | 63,000 | 3 | 1,89,000 |
5,04,000 | |||
For Y | |||
Date | Amount | Months | Product |
July 01, 2015 | 28,000 | 9 | 2,52,000 |
Jan. 01, 2016 | 14,000 | 3 | 42,000 |
Feb. 01, 2016 | 17,500 | 2 | 35,000 |
3,29,000 | |||
Answer:
Profit and Loss Appropriation Account for the year ended March 31, 2016 |
|||||
Dr. |
|
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
Interest on Capital |
|
Profit and Loss A/c |
6,90,000 |
||
A’s Capital A/c |
25,500 |
|
Interest on Drawings |
|
|
B’s Capital A/c |
16,500 |
|
A’s Capital A/c |
2,600 |
|
C’s Capital A/c |
18,300 |
60,300 |
B’s Capital A/c |
1,925 |
|
General Reserve |
55,600 |
C’s Capital A/c |
1,500 |
6,025 |
|
Salary to: |
|
|
|
||
A’s Capital A/c |
72,000 |
|
|
|
|
B’s Capital A/c |
48,000 |
|
|
|
|
C’s Capital A/c |
54,000 |
1,74,000 |
|
|
|
Commission to: |
|
|
|||
A’s Capital A/c |
55,200 |
|
|
||
B’s Capital A/c |
69,000 |
|
|
||
C’s Capital A/c |
21,296 |
1,45,496 |
|
|
|
Salary to Accountant (5,000 x 12) |
60,000 |
|
|
||
Commission to Accountant |
73,929 |
|
|
||
Profit transferred to: |
|
|
|
||
A’s Capital A/c |
56,311 |
|
|
|
|
B’s Capital A/c |
42,233 |
|
|
|
|
C’s Capital A/c |
28,156 |
1,26,700 |
|
|
|
|
6,96,025 |
|
6,96,025 |
||
|
|
|
|
Working Notes:
Calculation of Interest on Capital on Closing Balances
Calculation of Interest on Drawings
Calculation of Partners' Salary
Calculation of Commission to A and B
Calculation of Accountant's Commission
Calculation of C's Commission
Calculation of Profit Share of each Partner
Note: The divisible profit as per the above solution is worked out as Rs 1,26,700. However, as per the textbook answer it should be Rs 1,51,672.
View NCERT Solutions for all chapters of Class 15