# 12th | Ts grewal 2022-2023 Question 41 to 45 | Fundamental Accounting for Partnership firm

Double Entry Book Keeping Ts Grewal Vol. 1 2019 Solutions for Class 12 Commerce ACCOUNTANCY Chapter 2 - Accounting For Partnership Firms Fundamentals

#### Question 41:

Calculate interest on drawings of Ashok @ 10% p.a. for the year ended 31st March, 2022, 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.

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When equal amount is withdrawn in the beginning of each quarter, the interest on drawings is calculated for an average period of 7.5 months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 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When equal amount is withdrawn at the end of each quarter, the interest on drawings is calculated for an average period of 4.5 months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 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When equal amount is withdrawn in the middle of each quarter, the interest on drawings is calculated for an average period of 6 months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 Ashok’s drawing =30,000×10/100×6/12  =1,500

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 2021-22 were:

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

(ii) Divya's drawings were:

 31st May, 2021 `20,000 1st November, 2021 `17,500 1st February, 2022 `12,500

Calculate interest on partners' capitals@ 10% p.a. and interest on partners' drawings@ 6% p.a. for the year ended 31st March, 2022.

#### 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 31-5-2021 20,000 10 2,00,000 1-11-2021 17,500 5 87,500 1-2-2022 12,500 2 25,000 3,12,500

Divya’s Interest on Drawings = 3,12,500×6/10×1/12=1,563

#### 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

#### Question 43: Calculate the amount of Manan's monthly drawings for the year ended 31st March, 2022, in the following alternative cases when Partnership Deed allows interest on drawings @ 10% p.a.:

(i) If interest on drawings is 1,950 and he withdrew a fixed amount in the beginning of each month.

(ii) If interest on drawings is F 2,400 and he withdrew a fixed amount in the middle of each month.

(iii) If interest on drawings is 2,750 and he withdrew a fixed amount at the end of each month.

(i) If interest on drawings is 1,950 and he withdrew a fixed amount in the beginning of each month.

Interest on drawings @ 10% p.a.

Average month 6.5

Annual amount of drawings = (1,950×12×100) ÷ (6.5×10) = 36,000

Monthly amount of drawings = 36,000 ÷ 12 = 3000

(ii) If interest on drawings is F 2,400 and he withdrew a fixed amount in the middle of each month.

Interest on drawings @ 10% p.a.

Average month 6

Annual amount of drawings = (2,400 ×12×100) ÷ (6.5×10) =48,000

Monthly amount of drawings = 48,000 ÷ 12 = 4,000

(iii) If interest on drawings is 2,750 and he withdrew a fixed amount at the end of each month.

Interest on drawings @ 10% p.a.

Average month 5.5

Annual amount of drawings = (2,750 ×12×100) ÷ (5.5×10) =60,000

Monthly amount of drawings = 60,000 ÷ 12 = 5,000

#### Question 44: Calculate the amount of Shiv's quarterly drawings for the year ended 31st March, 2022, in the following alternative cases when Partnership Deed allows interest on drawings @ 12% p.a.:

(i) If interest on drawings is F 1,500 and he withdrew a fixed amount in the beginning of each quarter.

(ii) If interest on drawings is 1,200 and he withdrew a fixed amount in the middle of each quarter.

(iii) If interest on drawings is 900 and he withdrew a fixed amount at the end of each quarter.

(i) If interest on drawings is ` 1,500 and he withdrew a fixed amount in the beginning of each quarter.

Interest on drawings @ 12% p.a.

Average month 7.5

Annual amount of drawings = (1,500 ×12×100) ÷ (7.5×12) =20,000

Quarterly amount of drawings = 20,000 ÷ 4 = 5,000

(ii) If interest on drawings is 1,200 and he withdrew a fixed amount in the middle of each quarter.

Interest on drawings @ 12% p.a.

Average month 6

Annual amount of drawings = (1,200 ×12×100) ÷ (6×12) =20,000

Quarterly amount of drawings = 20,000 ÷ 4 = 5,000

(iii) If interest on drawings is 900 and he withdrew a fixed amount at the end of each quarter.

Interest on drawings @ 12% p.a.

Average month 4.5

Annual amount of drawings = (900 ×12×100) ÷ (4.5×12) =20,000

Quarterly amount of drawings = 20,000 ÷ 4 = 5,000

#### Question 45:

Amit and Vijay started a partnership business on 1st April, 2021. 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, 2022 was
` 2,16,000. Interest on drawings amounted to  ` 2,200 for Amit and  ` 2,500 for Vijay.
Prepare Profit and Loss Appropriation Account.

 Profit and Loss Appropriation Account for the year ended 31st March, 2022 Dr. Cr. Particulars ( `) Particulars ( `) 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