DK Goel Accountancy class 12 solutions chapter 1 Accounting for Partnership firms – basics which is printed through professional Accountancy instructors from the ultra-modern version of DK Goel Accountancy class 12 textbook solutions. We at MNS EdTech offer DK Goel solutions to assist students to understand all of the theories especially. there are numerous concepts in Accountancy, however the ideas of Admission of a companion, Accounting Ratios and cash glide statement is needed.
DK Goel Solutions Class 12 – Chapter 1 – Part A
Question 1
A and B are partners in a farm. A is entitled to a salary of ₹15,000 p.m and a commission of 10% of net profit before charging any commission. B is entitled to a commission of 10% of net profit after charging his commission. Net profit till 31st March 2018 was ₹4,40,000. Show the distribution of profit.
Solution:
| Dr. | Profit and Loss of Appropriate AccountTill 31st March, 2018 | Cr. | |
| Particulars | ₹ | Particulars | ₹ |
| To A’s Salary | 1,80,000 | By Profit & Loss A/c (Net Profit) | 4,40,000 |
| To A’s Commission(₹4,40,000 x 10/100) | 44,000 | ||
| To B’s Commission(₹4,40,000 x 10/110) | 40,000 | ||
| To Profit transferred to: | |||
| A’s Capital A/c 88,000B’s Capital A/c 88,000 | 1,76,000 | ||
| 4,40,000 | 4,40,000 |
Question 2
X, Y, and Z are partners sharing profits and losses in the ratio 3:2:1. After the final accounts have been prepared, it discovered that interest in drawings@5% p.a had not been taken into consideration. The drawings of the partners were: X ₹1,50,000, Y ₹1,26,000 , Z ₹1,20,000. Prepare a journal entry.
Solution:
Calculation of Interest on Drawings:
Since the date of the drawing is not given, interest will be charged for 6 months.
X: 5% on ₹1,50,000 for 6 months = ₹ 3,750
Y: 5% on ₹1,26,000 for 6 months = ₹ 3,150
Z: 5% on ₹1,20,000 for 6 months = ₹ 3,700
₹ 9,900
| Table Showing Adjustments | |||||
| X (₹) | Y (₹) | Z (₹) | Total | ||
| Interest on DrawingsDivision of ₹5,400 in 3:2:1 | Dr.Dr. | 2,5502,700 | 1,8501,850 | 1,000900 | 5,4005,400 |
| Difference | Cr.150 | Dr. 50 | DR.100 | ——– |
Hence, the adjusting entry will be:
| Journal Entry | |||||
| Date | Particulars | L.F | Dr. ₹ | Cr. ₹ | |
| Y’s Capital A/cZ’s Capital A/c | Dr.Dr. | 50100 | |||
| To X’s Capital A.c(Adjustment in respect of interest on drawing omitted in previous year’s account) | 150 |
Question 3
Akshara and Samiksha are partners. Business is carried from the property owned by Akshara on a monthly rent of ₹5,000. Akshara is entitled to a salary of ₹40,000 per quarter and Samiksha get a commission of 4% on net sales, which during the year was ₹5,00,000. Net profit till 31st March, 2018 before providing for rent was ₹6,00,000
Prepare a profit and loss appropriate account till 31st March 2018.
Solution:
| Dr. | Profit and Loss Appropriate AccountTill 31st March, 2018 | Cr. | |
| Particulars | ₹ | Particulars | ₹ |
| To Salary to AksharaTo commission to Samiksha | 1,60,0002,00,000 | By Profit & Loss A/c (Net Profit)( ₹6,00,00 – ₹60,000) | 5,40,000 |
| To Profit transferred to: | |||
| Akshara’s Capital A/c 90,000Samiksha’s Capital A/c 90,000 | 1,80,000 | ||
| 5,40,000 | 5,40,000 |
*Rent paid to a partner is a charge against profits. It will be debited to the Profit & Loss Account.
Question 4
Ravi and Mohan were partners in a firm sharing profits in the ratio of 7:5. Their respective fixed capitals were Ravi ₹10,00,000 and Mohan ₹7,00,000. The partnership deed provided for the following:
- Interest on Capital @ 12% pa.
- Ravi’s salary ₹6,000 per month and Mohan’s salary ₹60,000 per year.
The profit till March 31-3-2019 was ₹5,04,000 which was distributed equally, without providing for the above. Record an adjustment entry.
Solution:
| Statement of Adjustments | ||||
| Ravi (₹) | Mohan (₹) | Total (₹) | ||
| Interest on Capitals | Cr. | 1,20,000 | 84,000 | 2,04,000 |
| Salary | Cr. | 72,000 | 60,000 | 1,32,000 |
| Profit left* after authorizing interest on capital and salary will be ₹5,04,000 – ₹2,04,000 – ₹1,32,000 = ₹1,68,000. The profit sharing ration will be divided into, i.e, 7:5 | 98,000 | 70,000 | 1,68,000 | |
| Net amount that should have been received | Cr. | 2,90,000 | 2,14,000 | 5,04,000 |
| Less: Profit already distributed equally | Dr. | 2,52,000 | 2,52,000 | 5,04,000 |
| Net Effect | (Cr.) 38,000 | (DR.) 38,000 | ———– |
Related Links
| DK Goel Accountancy Solutions Class 12 – Part A (Chapter wise) | |
| Chapter 2 Change in Profit Sharing Ratio Among the Existing Partners | Chapter 3 Admission of a partner |
| Chapter 4 Retirement or Death of a Partner | Chapter 5 Dissolution of a Partnership Firm |
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