[NCERT] Q 11 Accounting for Partnership Basic Concepts Solutions Class 12

Solutions of Question number 11 of Accounting for Partnership Basic Concepts NCERT Accountancy Solutions Class 12 CBSE Board

Arvind and Anand are partners sharing profits and losses in the ratio 8 : 3 : 1 Balances in their capital accounts on April 01, 2019 were, Arvind ₹ 4,40,000 and Anand ₹ 2,60,000. As per their agreement, partners were entitled to interest on capital @ 5% p.a., and interest on drawings was to be charged @ 6% p.a. Arvind was allowed an annual salary of ₹ 35,000/- for the additional responsibilities taken up by him. Partners drawings for the year were , Arvind ₹ 40,000 and Anand ₹ 28,000. Profit and Loss Account of the firm for the year ending March 31, 2020 showed a Net Loss of ₹ 32,400. Prepare Profit and Loss Appropriation Account.

[Ans: (i) Interest on drawings: Arvind – ₹ 12,00, Anand ₹ 840 (ii) Share of Loss : Arvind – ₹ 22,770, and Anand – ₹ 7,590)

Solution:-