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Accountancy Numericals
Accountancy Solutions

Class 12 Accountancy All Chapter Numericals Solved | Navbodh Guide Solutions | CG Board


Question 1

Kunal and Saurabh are equal partners. On 1st Jan. 2017 their capitals were ₹20,000 and ₹16,000 respectively. Interest on Capital is allowed @10% p.a. from profit prior to division. Net Profit before interest on capital = ₹9,800.

Required:

Prepare:

  1. Journal Entries

  2. Profit & Loss Appropriation Account

Step 1: Calculate Interest on Capital

Kunal

Interest = ₹20,000 × 10/100

= ₹2,000

Saurabh

Interest = ₹16,000 × 10/100

= ₹1,600

Total Interest on Capital

= ₹2,000 + ₹1,600

= ₹3,600

Step 2: Calculate Profit Available for Distribution

Net Profit before Interest on Capital = ₹9,800

Less: Interest on Capital = ₹3,600

Remaining Profit = ₹6,200

Step 3: Profit Sharing Ratio

Equal Partners

Ratio = 1 : 1

Each Partner's Share

= ₹6,200 ÷ 2

= ₹3,100

Journal Entries

DateParticularsL.F.Debit (₹)Credit (₹)
Profit & Loss Appropriation A/c Dr.3,600
To Kunal's Capital A/c2,000
To Saurabh's Capital A/c1,600
(Interest on capital allowed)
Profit & Loss Appropriation A/c Dr.6,200
To Kunal's Capital A/c3,100
To Saurabh's Capital A/c3,100
(Profit distributed among partners)

Profit & Loss Appropriation Account

for the year ended 31 Dec. 2017

ParticularsAmount (₹)ParticularsAmount (₹)
To Interest on Capital:By Net Profit9,800
Kunal2,000
Saurabh1,600
To Profit transferred:
Kunal3,100
Saurabh3,100
Total9,800Total9,800

Answer Verified ✔

Profit after Interest on Capital = ₹6,200

Kunal's Share = ₹3,100

Saurabh's Share = ₹3,100

Question 2

Alok and Ashok are equal partners. Capitals are ₹20,000 and ₹16,000 respectively. Ashok gets salary ₹600 per month. Interest on Capital @6% p.a. Profit before adjustment = ₹12,000.

Required:

Prepare Profit & Loss Appropriation Account.

Step 1: Calculate Interest on Capital

Alok

Interest = ₹20,000 × 6%

= ₹1,200

Ashok

Interest = ₹16,000 × 6%

= ₹960

Total Interest

= ₹2,160

Step 2: Calculate Partner's Salary

Ashok's Salary

= ₹600 × 12

= ₹7,200

Step 3: Remaining Profit

Net Profit = ₹12,000

Less:

  • Interest on Capital = ₹2,160

  • Salary to Ashok = ₹7,200

Total = ₹9,360

Remaining Profit

= ₹12,000 − ₹9,360

= ₹2,640

Step 4: Distribution of Remaining Profit

Equal Partners

Ratio = 1 : 1

Each Share

= ₹2,640 ÷ 2

= ₹1,320

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Interest on Capital:By Net Profit12,000
Alok1,200
Ashok960
To Ashok's Salary7,200
To Profit transferred:
Alok1,320
Ashok1,320
Total12,000Total12,000

Answer Verified ✔

Alok's Profit Share = ₹1,320

Ashok's Profit Share = ₹1,320

Question 3

 Rakhi and Shikha are partners in a firm, with Capital of ₹ 2,00,000 and ₹ 3,00,000 respectively. The profit of the firm for the year ending 2014-15 ₹ 23,200. As per the partnership agreement. They share the profit in the Capital ratio after allowing a salary of ₹ 5,000 per month to Shikha and interest on partner's Capital at the rate of 10% p.a. During the year Rakhi withdraw ₹ 7,000 and Shikha ₹ 10,000 for their personal use. You are required to prepare profit and loss appropriation account. (NCERT) [Ans. Loss transferred to Rakhi Capital A/c ₹ 34,720 and Shikha Capital A/c ₹ 52,080.]

Rakhi and Shikha are partners with capitals ₹2,00,000 and ₹3,00,000 respectively. Net Profit = ₹23,200.

Partnership Deed provides:

  • Salary to Shikha = ₹5,000 per month

  • Interest on Capital = 10% p.a.

  • Profit sharing ratio = Capital Ratio

  • Drawings are ignored for P&L Appropriation because no interest on drawings is given.

Step 1: Calculate Interest on Capital

Rakhi

Interest = ₹2,00,000 × 10%

= ₹20,000

Shikha

Interest = ₹3,00,000 × 10%

= ₹30,000

Total Interest = ₹50,000

Step 2: Calculate Salary to Shikha

Salary = ₹5,000 × 12

= ₹60,000

Step 3: Total Appropriations

ParticularsAmount (₹)
Interest on Rakhi's Capital20,000
Interest on Shikha's Capital30,000
Shikha's Salary60,000
Total1,10,000

Step 4: Calculate Deficiency (Loss)

Profit Available = ₹23,200

Less Appropriations = ₹1,10,000

Deficiency = ₹86,800

Step 5: Share Deficiency in Capital Ratio

Capital Ratio

₹2,00,000 : ₹3,00,000

= 2 : 3

Rakhi's Share of Loss

= ₹86,800 × 2/5

= ₹34,720

Shikha's Share of Loss

= ₹86,800 × 3/5

= ₹52,080

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Interest on Capital:By Net Profit23,200
Rakhi20,000
Shikha30,000
To Shikha's Salary60,000
To Deficiency transferred:
Rakhi Capital A/c34,720
Shikha Capital A/c52,080
Total1,96,800Total23,200 + 1,73,600 = 1,96,800

Answer Verified ✔

Loss transferred:

  • Rakhi = ₹34,720

  • Shikha = ₹52,080

Question 4

Mahesh and Ramesh were partners in a firm sharing profit in the ratio of 5 : 3 their Capital were ₹ 3,00,000 and ₹ 2,00,000 respectively. The partnership deed provided that : (i) Interest on Capital should be allowed @ 12% per annum. (ii) A commission of 5% of net profit should be allowed to Ramesh. The net profit for the year was ₹ 1,23,000. Prepare profit and loss Appropriation A/c. [Ans. Net profit ₹ 35,531, ₹ 21,319, commission ₹ 6,150 Ramesh]

Mahesh and Ramesh share profits in ratio 5 : 3

Capitals:

  • Mahesh = ₹3,00,000

  • Ramesh = ₹2,00,000

Net Profit = ₹1,23,000

Interest on Capital = 12%

Commission to Ramesh = 5% of Net Profit

Step 1: Interest on Capital

Mahesh

= ₹3,00,000 × 12%

= ₹36,000

Ramesh

= ₹2,00,000 × 12%

= ₹24,000

Total = ₹60,000

Step 2: Commission to Ramesh

Commission

= ₹1,23,000 × 5%

= ₹6,150

Step 3: Remaining Profit

Net Profit = ₹1,23,000

Less:

Interest on Capital = ₹60,000

Commission = ₹6,150

Balance Profit

= ₹56,850

Step 4: Divide Balance Profit

Ratio = 5 : 3

Total Parts = 8

Mahesh

= ₹56,850 × 5/8

= ₹35,531

Ramesh

= ₹56,850 × 3/8

= ₹21,319

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Interest on Capital:By Net Profit1,23,000
Mahesh36,000
Ramesh24,000
To Ramesh Commission6,150
To Profit transferred:
Mahesh35,531
Ramesh21,319
Total1,23,000Total1,23,000

Answer Verified ✔

  • Mahesh = ₹35,531

  • Ramesh = ₹21,319

  • Commission = ₹6,150

Question 5

5. A and B are partners in the ratio of 3 : 2 respectively with Capitals of ₹ 40,000 and 30,000 respectively. Interest on Capital is agreed @ 5% per annum. B will be paid salary of ₹ 3,000 per annum which he has not withdrawn. During the year 2021, the profits before charging interest on Capitals but after charging B's salary amounted to ₹ 12,000. The manager is to be paid @ 5% commission on this amount. Prepare profit and loss appropriation account. [Ans. Net profit 7,900, A = ₹ 4,740, B = ₹ 3,160 and manager's commission ₹ 600]

A and B share profits in ratio 3 : 2

Capitals:

  • A = ₹40,000

  • B = ₹30,000

Interest on Capital = 5%

Salary to B = ₹3,000

Profit before Interest but after Salary = ₹12,000

Manager's Commission = 5% of Profit

Step 1: Manager's Commission

= ₹12,000 × 5%

= ₹600

Step 2: Net Profit Available

₹12,000 − ₹600

= ₹11,400

Step 3: Interest on Capital

A

= ₹40,000 × 5%

= ₹2,000

B

= ₹30,000 × 5%

= ₹1,500

Total = ₹3,500

Step 4: Remaining Profit

₹11,400 − ₹3,500

= ₹7,900

Step 5: Divide Profit (3 : 2)

A

= ₹7,900 × 3/5

= ₹4,740

B

= ₹7,900 × 2/5

= ₹3,160

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Interest on Capital:By Profit before Appropriation12,000
A2,000
B1,500
To Profit transferred:
A4,740
B3,160
Total11,400Total12,000
To Manager Commission600

Answer Verified ✔

  • Manager Commission = ₹600

  • A = ₹4,740

  • B = ₹3,160

Question 6

 A, B and C are partners in a firm with capitals ₹ 1,00,000, ₹ 60,000 and ₹ 40,000 respectively. Each partner is entitled interest on capital @ 5% p.a. and salary of ₹ 2,000 p.a. profit of the firm before 2021 allowing interest on capital and salary to partners were Rs. 50,000, First ₹ 10,000 of profit is to be distributed as 40%, 35% and 25% respectively and balance profit is to be shared equally among all the partners. Prepare profit and loss appropriation account. [Ans. Profit ₹ 34,000, A-12,000, B-11,500, C-10,500]

A, B and C are partners

Capitals:

  • A = ₹1,00,000

  • B = ₹60,000

  • C = ₹40,000

Interest on Capital = 5%

Salary = ₹2,000 each

Profit before Interest and Salary = ₹50,000

Distribution Rule:

  • First ₹10,000 in ratio 40% : 35% : 25%

  • Remaining profit equally

Step 1: Interest on Capital

A = ₹5,000

B = ₹3,000

C = ₹2,000

Total = ₹10,000

Step 2: Salary

₹2,000 each

Total Salary

= ₹6,000

Step 3: Remaining Profit

₹50,000 − ₹10,000 − ₹6,000

= ₹34,000

Step 4: Distribution of ₹34,000

First ₹10,000

A = 40% = ₹4,000

B = 35% = ₹3,500

C = 25% = ₹2,500

Balance Profit

₹34,000 − ₹10,000

= ₹24,000

Shared Equally

₹24,000 ÷ 3

= ₹8,000 each

Step 5: Total Profit Share

A

₹4,000 + ₹8,000

= ₹12,000

B

₹3,500 + ₹8,000

= ₹11,500

C

₹2,500 + ₹8,000

= ₹10,500

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Interest on Capital:By Net Profit50,000
A5,000
B3,000
C2,000
To Salary:
A2,000
B2,000
C2,000
To Profit transferred:
A12,000
B11,500
C10,500
Total50,000Total50,000

Answer Verified ✔

  • A = ₹12,000

  • B = ₹11,500

  • C = ₹10,500

Question 7

Rajesh, Sunil and Tarun are partners and their profit sharing ratio is 1/2 : 1/4 : 1/4. They are invested capital ₹ 12,000, 8,000 and ₹ 6,000 respectively. 5% interest charge on capital and 5% interest charge on drawing. Tarun is getting salary @ ₹ 3,000 p. a. Sunil will get 1% commission on total sales. The profit of 2021 before above adjustment was ₹ 11,500. Total sales was ₹ 1,40,000 and their drawing were ₹ 4,000, 5,600, 6,000 respectively. Interest on drawing ₹ 80, 100, ₹ 120 respectively. Prepare profit and loss appropriation A/c. [Ans. Profit transferred to Rajesh capital A/c ₹ 3,050, Sunil ₹ 1,525, Tarun ₹ 1,525.] In the Absence of Partnership Deed (Interest on Loan & Profit Distribution)

Rajesh, Sunil and Tarun are partners sharing profits in the ratio 1/2 : 1/4 : 1/4.

Working Notes

(1) Interest on Capital @ 5%

PartnerCapital (₹)Interest @5% (₹)
Rajesh12,000600
Sunil8,000400
Tarun6,000300
Total1,300

(2) Tarun's Salary

= ₹3,000

(3) Sunil's Commission

= 1% of ₹1,40,000

= ₹1,400

(4) Interest on Drawings

PartnerInterest on Drawings (₹)
Rajesh80
Sunil100
Tarun120
Total300

(5) Profit Available for Distribution

Net Profit = ₹11,500

Add: Interest on Drawings = ₹300

Adjusted Profit = ₹11,800

Less:

  • Interest on Capital = ₹1,300
  • Tarun Salary = ₹3,000
  • Sunil Commission = ₹1,400

Balance Profit = ₹6,100

(6) Distribution of Profit

Ratio = 2 : 1 : 1

Rajesh = ₹6,100 × 2/4 = ₹3,050

Sunil = ₹6,100 × 1/4 = ₹1,525

Tarun = ₹6,100 × 1/4 = ₹1,525

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Interest on Capital:By Net Profit11,500
Rajesh600By Interest on Drawings
Sunil400Rajesh80
Tarun300Sunil100
To Tarun's Salary3,000Tarun120
To Sunil's Commission1,400
To Profit transferred to Capital A/c:
Rajesh3,050
Sunil1,525
Tarun1,525
Total11,800Total11,800

Answer Verification ✔

Book Answer:

  • Rajesh = ₹3,050 ✔
  • Sunil = ₹1,525 ✔
  • Tarun = ₹1,525 ✔

Answer Correct

Question 8

On 1st January, 2021. A and B started business in partnership, No agreement was done either oral or written. They employed ₹ 40,000 and ₹ 10,000 as capital. On 1st July, 2002. A gave a loan of ₹ 5,000 to the firm. On 1st May, A met with an accident and could not work up to 30 June. On 31st December, 2021 the year's profit was ₹ 16,800. A claims that : (i) He should be given 10% Interest on capital and loan, (ii) Profit should be distributed in proportion of capital. B claims that : (i) 6% interest should be given on capital and loan. (ii) Equal distribution of profit should be done. (iii) He should be given a salary of ₹ 200 per month during the course of A's absence from business. Solve the problem as per law and prepare profit and loss A/c. [Ans. Profit 'A' ₹ 8,325; 'B' ₹ 8,325]

In Absence of Partnership Deed

Rules Applicable

  • Interest on Capital = Not Allowed
  • Salary = Not Allowed
  • Profit Sharing = Equal
  • Interest on Loan = 6% p.a.

Working Notes

Interest on Loan

Loan by A = ₹5,000

Given on 1 July

Interest = ₹5,000 × 6% × 6/12

= ₹150

Profit Available

Profit = ₹16,800

Less Interest on Loan = ₹150

Balance Profit = ₹16,650

Profit Sharing

Equal Ratio

A = ₹16,650 ÷ 2 = ₹8,325

B = ₹16,650 ÷ 2 = ₹8,325

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Profit transferred to A Capital A/c8,325By Profit transferred from P&L A/c16,650
To Profit transferred to B Capital A/c8,325
Total16,650Total16,650

Answer Verification ✔

A = ₹8,325 ✔

B = ₹8,325 ✔

Book Answer Correct

Question 9

Aakriti and Bindu entered into partnership for making garment on April 01, 2020 without any Partnership agreement. They introduced Capitals of ₹ 5,00,000 and 3,00,000 re- spectively on October 01, 2021. Aakriti advanced ₹ 20,000 by way of loan to the firm without any agreement as to interest. Profit and Loss Account for the year ended March 2022 showed profit of ₹ 43,000. Partners could not agree upon the question of interest and the basis of division of profit. You are required to divide the profits between them giving reason for your solution. [Ans. Profit will be shared equally, Aakriti and Bindu will get ₹ 21,200 each.]

Working Notes

Interest on Loan

Loan by Aakriti = ₹20,000

Interest = ₹20,000 × 6% × 6/12

= ₹600

Profit Available

Profit = ₹43,000

Less Interest on Loan = ₹600

Balance = ₹42,400

Profit Sharing

No Partnership Deed

Therefore Equal Sharing

Aakriti = ₹21,200

Bindu = ₹21,200

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Aakriti Capital A/c21,200By Profit transferred from P&L A/c42,400
To Bindu Capital A/c21,200
Total42,400Total42,400

Answer Verification ✔

Aakriti = ₹21,200 ✔

Bindu = ₹21,200 ✔

Book Answer Correct

Question 10

Arvind and Banvari are partners sharing profit in the ratio of 7 : 3 with capital of ₹ 1,500 and ₹ 1,000 respectively. 5% interest was agreed to be calculated on the capital of each partner and Banvari is to be allowed an annual salary of ₹ 240 which has not been withdrawn. During the year 2021 Arvind and Banvari withdrawn ₹ 120 and ₹ 200 respec- tively. The profit for the year prior to calculation of interest on capital, but after charging Banvari's salary amounted to ₹ 800. A provision of 3 1/8 % on this amount of ₹ 800 is to be made in respect of manager's commission. Prepare Partners' Capital Accounts and Profit & Loss A/c showing allocation of profit. [Ans. Profit Sharing—Arvind ₹ 455; Banvari ₹ 195; Capital Account Balance—Arvind ₹ 1,910; Banvari ₹ 1,285.]

Working Notes

Manager's Commission

= ₹800 × 3⅛%

= ₹25

Net Profit Available

= ₹800 − ₹25

= ₹775

Interest on Capital

PartnerCapitalIOC @5%
Arvind1,50075
Banvari1,00050
Total125

Balance Profit

= ₹775 − ₹125

= ₹650

Profit Distribution

Ratio = 7 : 3

Arvind = ₹650 × 7/10 = ₹455

Banvari = ₹650 × 3/10 = ₹195

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Interest on Capital:By Profit before Appropriation800
Arvind75
Banvari50
To Profit transferred:
Arvind455
Banvari195
Total775Total800
To Manager's Commission25

Partners' Capital Accounts

ParticularsArvind (₹)Banvari (₹)
Opening Capital1,5001,000
Add: Interest on Capital7550
Add: Salary—240
Add: Share of Profit455195
Less: Drawings120200
Closing Capital1,9101,285

Answer Verification ✔

Arvind Profit = ₹455 ✔

Banvari Profit = ₹195 ✔

Closing Capital:

Arvind = ₹1,910 ✔

Banvari = ₹1,285 ✔

Question 11

Sita and Gita are partners in a firm whose capital on 1st January, 2021 were ₹ 60,000 and ₹ 50,000 respectively, They are allowed interest on capital @ 7 1/2 % per annum. Sita gave ₹ 16,000 to the firm as loan on 1st July, 2021. Gita is entitled to get an annual salary of ₹ 8,000. The profit for the year ended 31st December, 2021 before making above adjust- ment were ₹ 18,000. Prepare profit and loss appropriation A/c. [Ans. Net Profit Sita 635, Gita 635]

Working Notes

Interest on Capital @ 7.5%

PartnerCapital (₹)Interest (₹)
Sita60,0004,500
Gita50,0003,750
Total8,250

Gita's Salary

= ₹8,000

Interest on Loan

Loan = ₹16,000

Interest = ₹16,000 × 6% × 6/12

= ₹480

Profit Available for Appropriation

Profit before adjustment = ₹18,000

Less Interest on Loan = ₹480

Profit for Appropriation = ₹17,520

Balance Profit

= ₹17,520 − ₹8,250 − ₹8,000

= ₹1,270

Profit Sharing

Equal Ratio

Sita = ₹635

Gita = ₹635

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Interest on Capital:By Net Profit transferred from P&L A/c17,520
Sita4,500
Gita3,750
To Gita's Salary8,000
To Profit transferred:
Sita635
Gita635
Total17,520Total17,520

Answer Verification ✔

Sita = ₹635 ✔

Gita = ₹635 ✔

Question 12

X and Y are partners in a firm sharing profit and loss in the ratio of 3 : 2. The capital are

₹ 75,000, ₹ 50,000 respectively the following information :

Supplied for the year ended 31st December, 2021.

ParticularsX (₹)Y (₹)
Additional capital brought on 1-7-202115,00010,000
Interest on capital per annum6%6%
Drawings during the year1,5001,000
Salary1,000-
Commission500350
Share of loss for the year3,0002,000
Interest on drawing9060
Record the above information in capital A/c of partners when :
(i) Capital are fixed, (ii) Capital are fluctuating.
[Ans. Balance of Fixed Capital ₹ 90,000; ₹ 60,000 and Balance of current A/c ₹ 1,860,
₹ 590 and Balance of fluctuating capital A/c ₹ 91,860 and ₹ 60,590]

X and Y are partners sharing profits and losses in the ratio 3 : 2.

Working Notes

Interest on Capital

X

Capital = ₹75,000

Additional Capital = ₹15,000 (from 1 July)

Interest:

= 75,000 × 6%

= ₹4,500

Additional Capital Interest

= 15,000 × 6% × 6/12

= ₹450

Total IOC = ₹4,950

Y

Capital = ₹50,000

Additional Capital = ₹10,000

Interest:

= 50,000 × 6%

= ₹3,000

Additional Capital Interest

= 10,000 × 6% × 6/12

= ₹300

Total IOC = ₹3,300

Fixed Capital Accounts

X's Fixed Capital Account

ParticularsAmount (₹)
Opening Capital75,000
Add: Additional Capital15,000
Closing Balance90,000

Y's Fixed Capital Account

ParticularsAmount (₹)
Opening Capital50,000
Add: Additional Capital10,000
Closing Balance60,000

Current Accounts

X's Current Account

ParticularsAmount (₹)
Interest on Capital4,950
Salary1,000
Commission500
Less Drawings(1,500)
Less Interest on Drawings(90)
Less Share of Loss(3,000)
Balance c/d1,860

Y's Current Account

ParticularsAmount (₹)
Interest on Capital3,300
Commission350
Less Drawings(1,000)
Less Interest on Drawings(60)
Less Share of Loss(2,000)
Balance c/d590

Answer Verification ✔

Fixed Capital

X = ₹90,000 ✔

Y = ₹60,000 ✔

Current Account

X = ₹1,860 ✔

Y = ₹590 ✔

Fluctuating Capital

X = 90,000 + 1,860

= ₹91,860 ✔

Y = 60,000 + 590

= ₹60,590 ✔

Book Answer Correct

Question 13

Tripathi and Chauhan are partners in firm sharing profit and losses in the ratio of 3 : 2. Their Capitals were ₹ 60,000 and ₹ 40,000 as on January 01, 2021. During the year they earned a profit of ₹ 30,000. According to the partnership deed both the partner's are entitled to ₹ 1,000 per month as salary and 5% interest on their Capital. They are also to be charged an interest of 5% on their drawings irrespective of the period, which is ₹ 12,000 for Tripathi, ₹ 8,000 for Chauhan. Interest allowed on Drawing @ 5% p.a. Prepare profit and loss appropriation A/c and partners' Capital a/c when Capital are fixed. (NCERT) [Ans. Tripathi's current A/c 20,400; Chauhan's current A/c 17,600. Profit Tripathi ₹ 18,000; Chauhan's ₹ 12,000]

Tripathi and Chauhan share profits in ratio 3 : 2

Capitals:

Tripathi = ₹60,000

Chauhan = ₹40,000

Profit = ₹30,000

Salary = ₹1,000 per month each

IOC = 5%

Drawings:

Tripathi = ₹12,000

Chauhan = ₹8,000

IOD = 5%

Working Notes

Interest on Capital

Tripathi

= 60,000 × 5%

= ₹3,000

Chauhan

= 40,000 × 5%

= ₹2,000

Total IOC

= ₹5,000

Salary

₹1,000 × 12

= ₹12,000 each

Total Salary

= ₹24,000

Interest on Drawings

Tripathi

= 12,000 × 5%

= ₹600

Chauhan

= 8,000 × 5%

= ₹400

Total

= ₹1,000

Profit Available

Net Profit

= ₹30,000

Add Interest on Drawings

= ₹1,000

Adjusted Profit

= ₹31,000

Less:

Salary = ₹24,000

IOC = ₹5,000

Balance Profit

= ₹2,000

Distribution of Profit

Ratio = 3 : 2

Tripathi

= ₹2,000 × 3/5

= ₹1,200

Chauhan

= ₹2,000 × 2/5

= ₹800

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Salary A/c:By Net Profit30,000
Tripathi12,000By Interest on Drawings1,000
Chauhan12,000
To Interest on Capital:
Tripathi3,000
Chauhan2,000
To Profit transferred:
Tripathi1,200
Chauhan800
Total31,000Total31,000

Current Accounts (Fixed Capital Method)

Tripathi Current Account

ParticularsAmount (₹)
Salary12,000
IOC3,000
Share of Profit1,200
Less Drawings(12,000)
Less IOD(600)
Balance c/d3,600

Chauhan Current Account

ParticularsAmount (₹)
Salary12,000
IOC2,000
Share of Profit800
Less Drawings(8,000)
Less IOD(400)
Balance c/d6,400

Important Verification

यहाँ हमारे calculation के अनुसार:

  • Tripathi Current A/c = ₹3,600
  • Chauhan Current A/c = ₹6,400

लेकिन Book Answer में:

  • Tripathi = ₹20,400
  • Chauhan = ₹17,600

इसका मतलब प्रश्न में या Answer Key में कुछ data missing/printing error है।

Question 14

Anil, Vimal and Sunil are partners sharing profits and losses in the ratio of 3 : 2 : 1 with Capital respectively of ₹ 40,000, ₹ 40,000 and ₹ 20,000. Interest Capital is payable @ 5% Vimal and Sunil are entitled to a salary of ₹ 600 and ₹ 400 per month respectively. During the year 2007 Anil, Vimal and Sunil withdrew respectively ₹ 4,000, ₹ 4000 and ₹ 4,800. The firm showed a profit of ₹ 32,000 during 2021 after charging partner's salaries but before charging interest on their Capitals. This profit is subjected to (1) depreciation @ 7.5% on the furniture costing ₹ 20,000 and (2) provision for bad debts worth ₹ 600 for the year. Prepare partners' Capital Accounts when (i) Capital is fluctuating and (ii) When Capital is fixed.

Anil, Vimal and Sunil are partners sharing profits in the ratio 3 : 2 : 1.

Capitals:

  • Anil = ₹40,000
  • Vimal = ₹40,000
  • Sunil = ₹20,000

Interest on Capital = 5%

Salary:

  • Vimal = ₹600 per month
  • Sunil = ₹400 per month

Drawings:

  • Anil = ₹4,000
  • Vimal = ₹4,000
  • Sunil = ₹4,800

Profit shown by firm = ₹32,000

This profit is after salary but before IOC.

Further Adjustments:

  • Depreciation on Furniture @ 7.5%
  • Furniture = ₹20,000
  • Provision for Bad Debts = ₹600

Working Notes

1. Depreciation on Furniture

= ₹20,000 × 7.5%

= ₹1,500

2. Provision for Bad Debts

= ₹600

3. Corrected Profit

Profit given = ₹32,000

Less:

  • Depreciation = ₹1,500
  • Provision = ₹600

Corrected Profit

= ₹29,900

4. Interest on Capital

PartnerCapital (₹)IOC @ 5% (₹)
Anil40,0002,000
Vimal40,0002,000
Sunil20,0001,000
Total5,000

5. Partner's Salary

Vimal

= ₹600 × 12

= ₹7,200

Sunil

= ₹400 × 12

= ₹4,800

Total Salary

= ₹12,000

6. Profit Available

Corrected Profit = ₹29,900

Less IOC = ₹5,000

Balance = ₹24,900

7. Profit Distribution

Ratio = 3 : 2 : 1

Total Parts = 6

Anil

= ₹24,900 × 3/6

= ₹12,450

Vimal

= ₹24,900 × 2/6

= ₹8,300

Sunil

= ₹24,900 × 1/6

= ₹4,150

Profit & Loss Appropriation Account

ParticularsAmount (₹)ParticularsAmount (₹)
To Interest on Capital:By Net Profit29,900
Anil2,000
Vimal2,000
Sunil1,000
To Profit transferred:
Anil12,450
Vimal8,300
Sunil4,150
Total29,900Total29,900

Verification of Book Answer

Book Answer:

Net Profit = ₹24,900

✔ Correct

यहाँ Book ने "Net Profit available for distribution after IOC" दिखाया है।

हमारा Calculation:

29,900 − 5,000

= ₹24,900

✔ Verified

Partners' Capital Accounts (Fluctuating Capital Method)

ParticularsAnil (₹)Vimal (₹)Sunil (₹)
Opening Capital40,00040,00020,000
Add IOC2,0002,0001,000
Add Salary—7,2004,800
Add Profit Share12,4508,3004,150
Less Drawings4,0004,0004,800
Closing Capital50,45053,50025,150

Partners' Current Accounts (Fixed Capital Method)

Anil Current A/c

ParticularsAmount (₹)
IOC2,000
Profit Share12,450
Less Drawings(4,000)
Balance c/d10,450

Vimal Current A/c

ParticularsAmount (₹)
IOC2,000
Salary7,200
Profit Share8,300
Less Drawings(4,000)
Balance c/d13,500

Sunil Current A/c

ParticularsAmount (₹)
IOC1,000
Salary4,800
Profit Share4,150
Less Drawings(4,800)
Balance c/d5,150

Final Verified Answers ✔

  • Corrected Profit = ₹29,900
  • Profit Available after IOC = ₹24,900 ✔
  • Anil's Share = ₹12,450
  • Vimal's Share = ₹8,300
  • Sunil's Share = ₹4,150

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