12th Ts grewal 2021-22 Question 11 to 15 Accounting for partnership firm- fundamentals

Page No 2.83:

Question 11;

Nirmal and Pawan are partners sharing profits in the ratio of 3 :2. The firm had given loan to Pawan of `5,00,000 on 1st April, 2020. Interest was to be charged @ 10% p.a. The firm took loan of `2,00,000 from Nirmal on 1st October, 2020. Before giving effect to the above, the firm incurred a loss of `10,000 for the year ended 31st March, 2021.

Determine the amount to be transferred to Profit and Loss Appropriation Account.

Answer;

Profit and loss account year ended 31 March
Particulars	`	Particulars	`
To net Loss B/d To interest on loan (Nirmal) 2,00,000×6/100×6/12 To Net profit transferred to P&L Appropriation A/c	10,000 6,000 34,000	by interest on loan (Pawan) 5,00,000×10/100	50,000
	50,000		50,000

Page No 2.83:

Question 12;

Ankit, Bhanu and Charu are partners in a firm sharing profits and losses equally with capital of `2,50,000 each. On 1st October, 2020, Ankit and Bhanu gave loans of `2,50,000 each to the firm whereas Charu took a loan of `1,00,000 from the firm on the same date. It was agreed among the partners that Charu will be charged Interest @6% pa. Interest on loan from partners was paid on 10th April, 2020.The firm closes its books on 31st March each year.

Pass the Journal entries in the books of the firm for the year ended 31st March, 2021.

Answer;

Date	Particulars		L.F.	Dr. `	Cr. `
31 March	Interest on loan A/c To Akhil’s loan A/c To Bhanu’s loan A/c (Being interest on loan provided @ 6% p.a. on 2,50,000 for six month)	Dr. Dr.		15,000 3,000	7,500 7,500 3,000
31 March	Charu’s capital A/c To Interest on loan A/c (Being interest on loan allowed to Charu@ 6% p.a. on 1,00,000 for six month)	Dr. Dr.		15,000 3,000	7,500 7,500 3,000
				18,000	18,000

Page No 2.84:

Question 13:

Vinod and Mohan are partners. Vinod 's Capital is ` 1,00,000 and Mohan 's Capital is ` 60,000. Interest on capital is payable @ 6% p.a. Mohan is entitled to a salary of ` 3,000 per month. Profit for the current year before interest and salary to Mohan is ` 80,000.
Prepare Profit and Loss Appropriation Account.

Answer:

Profit and Loss Appropriation Account
Dr.				Cr.
Particulars		Amount `	Particulars	Amount `
Interest on Capital:			Profit and Loss A/c (Net Profit)	80,000
Vinod’s Capital A/c	6,000
Mohan’s Capital A/c	3,600	9,600
Salary to B (` 3,000 × 12)		36,000
Profit transferred to:
Vinod’s Capital A/c	17,200
Mohan’s Capital A/c	17,200	34,400
		80,000		80,000

Working Notes:

WN1 Calculation of Interest on Capital

Interest on Vinod’s loan=1,00,000×6/100×6/12=6,000

Interest on Mohan's loan=60,000×6/100×6/12=3,600

WN 2 Calculation of Profit Share of each Partner

Divisible Profit = 80,000 – 9,600 – 36,000 = 34,400

Profit share of Vinod and Mohan =34,400×1/2=17,200

Page No 2.84:

Question 14:

X, Y and Z are partners in a firm sharing profits in 2 : 2 : 1 ratio. The fixed capitals of the partners were : X `5,00,000; Y ` 5,00,000 and Z ` 2,50,000 respectively. The Partnership Deed provides that interest on capital is to be allowed @ 10% p.a. Z is to be allowed a salary of ` 2,000 per month. The profit of the firm for the year ended 31st March, 2021 after debiting Z's salary was ` 4,00,000.
Prepare Profit and Loss Appropriation Account.

Answer:

Profit and Loss Appropriation Account for the year ended 31st March 2021
Dr.					Cr.
Particulars			Amount `	Particulars	Amount `
Interest on Capital:				Profit and Loss A/c (Net Profit after Z’s salary)	4,00,000
X’s Current A/c		50,000
Y’s Current A/c		50,000
Z’s Current A/c		25,000	1,25000
Profit transferred to:
X’s Current A/c	1,10,000
Y’s Current A/c	1,10,000
Z’s Current A/c	55,000		2,75,000
			4,00,000		4,00,000

Working Notes:

WN 1 Salary to Z has not been debited to Profit and Loss Appropriation Account. This is because Profit of ` 4,00,000 is given after adjusting the Z’s salary.

WN 2 Calculation of Interest on Capital

Interest on X' s Capital=5,00,000×10/100=50,000

Interest on Y's Capital=5,00,000×10/100=50,000

Interest on Z' s Capital=2,50,000×10/100=25,000

WN 3 Calculation of Profit Share of each Partner

Divisible of Profit after Interest on Capital = ` 4,00,000 - ` 1,25,000 = ` 2,75,000

Profit sharing ratio = 2 : 2 : 1

Profit share of X' s =5,00,000×2/5=1,10,000

Profit share of Y' s =5,00,000×2/5=1,10,000

Profit share of Z' s=5,00,000×1/5=55,000

Page No 2.84:

Question 15:

X and Y are partners sharing profits in the ratio of 3 : 2 with capitals of ` 8,00,000 and ` 6,00,000 respectively. Interest on capital is agreed @ 5% p.a. Y is to be allowed an annual salary of ` 60,000 which has not been withdrawn. Profit for the year ended 31st March, 2021 before interest on capital but after charging Y's salary amounted to `2,40,000.
A provision of 5% of the profit is to be made in respect commission to the manager. Prepare an account showing the allocation profits.

Answer:

Profit and Loss Account for the year ended 31st March 2021
Dr.			Cr.
Particulars	Amount ( `)	Particulars	Amount ( `)
Manager’s Commission (3,00,000×5%)	15,000	Profit and Loss A/c (Net Profit Before Y’s salary 2,40,000+60,000)	2,40,000

Profit transferred to Profit and Loss
Appropriation A/c	2,85,000
	3,00,000		3,00,000

Profit and Loss Appropriation Account for the year ended 31st March 2021
Dr.				Cr.
Particulars		Amount ( `)	Particulars	Amount ( `)
Salary to (Y’s Current A/c)		60,000	Profit and Loss A/c	2,85,000
Interest on Capital:			(Profit transferred from P&L A/c)
X’s Current A/c	40,000
Y’s Current A/c	30,000	70,000
Profit transferred to:
X’s Current A/c	93,000
Y’s Current A/c	62,000	1,55,000
		2,85,000		2,85,000