12th Ts grewal 2021-22 Question 41 to 45 Accounting for partnership firm- fundamentals


Page No 2.88:

Question 41:

Calculate interest on drawings of Ashok @ 10% p.a. for the year ended 31st March, 2021, in each of the following alternative cases:
Case 1.  If he withdrew `7,500 in the beginning of each quarter.
Case 2.  If he withdrew `7,500 at the end of each quarter.
Case 3.  If he withdrew `7,500 during the middle of each quarter.

 

Answer:

 

Total Drawings = 7,500 × 4 = ` 30,000

Interest Rate = 10% p.a.

Case (a)

When equal amount is withdrawn in the beginning of each quarter, the interest on drawings is calculated for an average period of 7.5 months

Interest on drawing= total drawing×Rate of drawing/100×Average month / 12

Interest on Ashok’s drawing =30,000×10/100×7.5/12  =1,875

Case (b)

When equal amount is withdrawn at the end of each quarter, the interest on drawings is calculated for an average period of 4.5 months

Interest on drawing= total drawing×Rate of drawing/100×Average month / 12

Interest on Ashok’s drawing =30,000×10/100×4.5/12 =1,125

Case (c) 

When equal amount is withdrawn in the middle of each quarter, the interest on drawings is calculated for an average period of 6 months

Interest on drawing= total drawing×Rate of drawing/100×Average month / 12

Interest on Ashok’s drawing =30,000×10/100×6/12  =1,500

 



Page No 2.88:

Question 42: The capital accounts of Tisha and Divya showed credit balances of  `10,00,000 and `7,50,000 respectively after taking into account drawings and net profit of  `5,00,000. The drawings of the partners during the year 2020-21 were:

(i) Tisha withdrew `25,000 at the end of each quarter.

(ii) Divya's drawings were:

31st May, 2020

`20,000

1st November, 2020

`17,500

1st February, 2021

`12,500

Calculate interest on partners' capitals@ 10% p.a. and interest on partners' drawings@ 6% p.a. for the year ended 31st March, 2021.

 

Answer:

Calculation of Interest on Drawings

Tisha’s Total Drawings= 25,000×4=1,00,000

Tisha’s Interest on Drawings= 1,00,000×3/100×4.5/12=2,250

 

Divya’s Interest on Drawings

Date of Drawings

Drawings

Time left after Drawing

Product

31-5-2020

20,000

10

2,00,000

1-11-2020

17,500

5

87,500

1-2-2021

12,500

2

25,000

 

3,12,500

 

Divya’s Interest on Drawings = 3,12,500×6/100×1/12=1,563

 

Calculation of Interest on Capital

 

Calculation of opening Capital

 

Tisha

Divya

Closing Capital

Add; Drawings

10,00,000

1,00,000

7,50,000

50,000

 

Less: Profit

11,00,000

2,50,000

8,00,000

2,50,000

Opening Capital

8,50,000

5,50,000

 

Tisha’s Interest on Capital = 8,50,000×10/100=85,000

Divya’s Interest on Capital = 5,50,000×10/100=55,000

 



Page No 2.89:

Question 43:

Amit and Vijay started a partnership business on 1st April, 2020. Their capital contributions were `2,00,000 and  `1,50,000 respectively. The Partnership Deed provided as follows:
(a) Interest on capital be allowed @10% p.a.
(b) Amit to get a salary of  `2,000 per month and Vijay `3,000 per month.
(c) Profits are to be shared in the ratio of 3 : 2.
Net profit for the year ended 31st March, 2021 was `2,16,000. Interest on drawings amounted to `2,200 for Amit and `2,500 for Vijay.
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)

2,16,000

Amit’s Capital A/c

20,000

 

Interest on Drawings A/c:

 

Vijay’s Capital A/c

15,000

35,000

Amit’s Capital A/c

2,200

 

Salary to:

 

Vijay’s Capital A/c

2,500

4,700

Amit (2,000 × 12)

24,000

 

 

 

Vijay (3,000 × 12)

36,000

60,000

 

 

Profit transferred to:

 

 

 

Amit’s Capital A/c

75,420

 

 

 

Vijay’s Capital A/c

50,280

1,25,700

 

 

 

2,20,700

 

2,20,700

 

 

 

 


Working Notes:

WN 1 Calculation of Interest on Capital

Interest on Amit’s Capital=2,00,000×10/100=20,000

Interest on Vijay’s Capital=1,50,000×10/100=15,000

 

WN 2 Calculation of Profit Share of each Partner

Divisible Profit = 2,16,000 + 4,700 - ` 35,000 - ` 60,000 = ` 1, 25,700

Profit sharing ratio = 3 : 2

Amit’s profit share=1,25,700×3/5=75,420

Vijay’s profit share=1,25,700×2/5=50,280

 



Page No 2.89:

Question 44:

Prepare Capital Accounts of the Partners Ajay and Sanjay from the following information, If their capitals are fluctuating: 

 

Ajay

( `)   

Sanjay
( `)

Capital on 1st April, 2020

4,00,000

3,00,000

Drawings during the year ended 31st march, 2021

50,000

30,000

Interest on Capital

5% p.a.

5% p.a.

Interest on Drawings

1,250

750

Share of Profit for the year ended 31st march, 2021

60,000

50,000

Partner's Salary

36,000

.....

Commission

5,000

3,000

Answer:

Partners’ Capital Accounts

Dr.

Cr.

Particulars

Ajay

( `)   

Sanjay
( `)

Particulars

Ajay

( `)   

Sanjay
( `)

Drawings A/c

50,000

30,000

Balance b/d

4,00,000

3,00,000

Interest on Drawings A/c

1,250

750

Interest on Capital A/c     

20,000

15,000

 

 

 

P&L Appropriation A/c

60,000

50,000

Balance c/d

4,69,750

3,37,250

Partners’ Salary

36,000

–

 

 

 

Commission

5,000

3,000

 

5,21,000

3,68,000

 

5,21,000

3,68,000

 

 

 

 

 

 

 

Working Note:

 

Calculation of Interest on Capital

Interest on Ajay’s capital = 4,00,000×5/100=20,000

Interest on Sanjay’s capital = 3,00,000×5/100=15,000

 



Page No 2.89:

Question 45:

A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2020, their capitals were: A `50,000 and B `30,000. During the year ended 31st March, 2021 they earned a net profit of `50,000. The terms of partnership are:
(a) Interest on capital is to allowed @ 6% p.a.
(b) A will get a commission @ 2% on turnover.
(c) B will get a salary of `500 per month.
(d) B will get commission of 5% on profits after deduction of all expenses including such commission.
Partners' drawings for the year were: A `8,000 and B `6,000. Turnover for the year was `3,00,000.
After considering the above facts, you are required to prepare Profit and Loss Appropriation Account and Partners' Capital Accounts.

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)

50,000

A’s Capital A/c

3,000

 

 

 

B’s Capital A/c

1,800

4,800

 

 

B’s Salary (500 × 12)

6,000

 

 

Partner’s  Commission                     

 

 

 

A’s Capital A/c

6,000

 

 

 

B’s Capital A/c

1,581

7,581

 

 

Profit transferred to:

 

 

 

A’s Capital A/c

23,714

 

 

 

B’s Capital A/c

7,905

31,619

 

 

 

50,000

 

50,000

 

 

 

 

 

Partners’ Capital Accounts

Dr.

 

 

 

 

Cr.

Particulars

A
( `)

B
( `)

Particulars

A
( `)

B
( `)

Drawings A/c          

8,000

6,000

Balance b/d

50,000

30,000

 

 

 

Interest on Capital A/c

3,000

1,800

 

 

 

Commission A/c

6,000

1,581

 

 

 

Salary A/c

 

6,000

Balance c/d

74,714

41,286

P/L Appropriation A/c   

23,714

7,905

 

82,714

47,286

 

82,714

47,286

 

 

 

 

 

 

Working Notes:

WN 1 Calculation of Interest on Capital

Interest on A’s capital=50,000×6/100=3000

Interest on B’s capital=30,000×6/100=1,800

 

WN 2 Calculation of Commission to Partners

A’s commission = 2% on turnover

=3,00,000×2/100=6,000

 

Commission to B = 5% on Profits after all Expense including such Commission

Profits after all expense = 50,000- ` 4,800 -` 6,000- ` 6,000 = ` 33,200

B’s commission= Profit after all expenses×Rate of commission/100+Rate

33.200×5/105=1,581 (approx.)

 

WN 3 Calculation of Profit Share of each Partner

Profit available for Distribution = 50,000 -` 4,800 -` 6,000 -`7,581 = ` 31,619

Profit sharing ratio = 3 : 1

A’s profit share= 31,619×3/4=23,716

B’s profit share= 31,619×1/4=7,905