✓ Board-verified
Accountancy · 2025 · 3 marks
CBSE 2025 · Region 2 · Set 2 · Q19
Aakash and Baadal entered into partnership on 1st October, 2023 with the capitals of ₹ 80,00,000 and ₹ 60,00,000 respectively. They decided to share…
Aakash and Baadal entered into partnership on 1st October, $\displaystyle 2023$ with the capitals of ₹ $\displaystyle 80,00,000$ and ₹ $\displaystyle 60,00,000$ respectively. They decided to share profits and losses equally. Partners were entitled to interest on capital @ $\displaystyle 10$% per annum as per the provisions of the partnership deed. Baadal is given a guarantee that his share of profit, after charging interest on capital will not be less than ₹ $\displaystyle 7,00,000$ per annum. Any deficiency arising on that account shall be met by Aakash. The profit of the firm for the year ended 31st March, $\displaystyle 2024$ amounted to ₹ $\displaystyle 13,00$,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2024.
Parul and Rajul were partners in a firm, sharing profits and losses in the ratio of $\displaystyle 5$ : 3. The balance in their fixed capital accounts on 1st April, $\displaystyle 2023$ were : Parul ₹ $\displaystyle 6,00,000$ and Rajul ₹ $\displaystyle 8,00$,000. The partnership deed provided for allowing interest on capital at $\displaystyle 12$% per annum. The net profit of the firm for the year ended 31st March, $\displaystyle 2024$ was ₹ $\displaystyle 1,26$,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2024. Show your working clearly.
Marking-scheme solution
Books of Aakash and Baadal
Profit and Loss Appropriation A/c
for the year ended 31st March $\displaystyle 2024$
Dr. Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Interest on Capital: By Profit and Loss A/c $\displaystyle 13,00,000$
(Net Profit)…………….
Aakash $\displaystyle 4,00,000$ ½
Baadal $\displaystyle 3,00,000$ ½ $\displaystyle 7,00,000$
To Profit transferred to capital accounts:
Aakash $\displaystyle 3,00,000$ ½
Less: Share of deficiency $\displaystyle 50,000$ ½ $\displaystyle 2,50,000$
Baadal $\displaystyle 3,00,000$ ½
Add deficiency
Received from Aakash $\displaystyle 50,000$ ½ $\displaystyle 3,50,000$
$\displaystyle 13,00,000$ $\displaystyle 13,00,000$
Q. (b) Parul and Rajul were partners in a firm…..
Books of Parul and Rajul
Profit and Loss Appropriation A/c
for the year ended 31st March $\displaystyle 2024$
Dr. Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Interest on Capital: By Profit and Loss A/c $\displaystyle 1,26,000$
(Net Profit)…………….½
Parul $\displaystyle 54,000$ ½
Rajul $\displaystyle 72,000$ ½ $\displaystyle 1,26,000$
$\displaystyle 1,26,000$ $\displaystyle 1,26,000$
Interest on Capital @$\displaystyle 12$% p.a.
Parul: ₹$\displaystyle 6,00,000$ x $\displaystyle 12$/$\displaystyle 100$ = ₹$\displaystyle 72,000$
Rajul: ₹$\displaystyle 8,00,000$ x $\displaystyle 12$/$\displaystyle 100$ = ₹$\displaystyle 96,000$
Ratio of Interest on Capital $\displaystyle 3$:$\displaystyle 4$
Net Profit ₹$\displaystyle 1,26,000$
Interest on Capital in the ratio $\displaystyle 3$:$\displaystyle 4$ will be:
Parul: ₹$\displaystyle 1,26,000$ x $\displaystyle 3$/$\displaystyle 7$ = ₹$\displaystyle 54,000$
Rajul: ₹$\displaystyle 1,26,000$ x $\displaystyle 4$/$\displaystyle 7$ = ₹$\displaystyle 72,000$
Practice Accounting for Partnership: Basic Concepts →All Accounting for Partnership: Basic Concepts questions
More from Accounting for Partnership: Basic Concepts
- Anita and Priyal were partners in a firm sharing profits and losses in the ratio of 3: 2. On 1st April, 2024,…2026
- Reema, Meesha and Shikha were partners in a partnership firm sharing profits and losses in the ratio of 8: 7:…2025
- Anuj and Kartik were partners in a firm sharing profits and losses in the ratio of 5: 4. Anuj withdrew ₹…2025
- Monika, Bhoomika and Kamolika are partners sharing profits in the ratio of 6: 4: 1. Kamolika is guaranteed a…2023
- Richa, Sheena and Tapti were partners in a firm sharing profits and losses in the ratio of 3: 2: 1. The…2024
- Radhika, Mehar and Shubha were partners in a firm sharing profits and losses in the ratio of 9: 8: 7. If…2025
- Sun and Moon were partners in a firm sharing profits and losses equally. Their fixed capitals were ₹ 5,00,000…2025
- Nandita and Prabha were partners in a firm manufacturing furniture. They were sharing profits and losses in…2026
CBSE Class 12 Accountancy past-paper question from the 2025board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.