Page 32 - ISCDEBK-12

1.22 Double Entry Book Keeping (Section A)—ISC XII

2. Interest on Drawings:
Sachin:
(i) On ` 10,000 @ 10% p.a. for 9 months 750
(ii) On ` 18,000 @ 10% p.a. for 3 months 450
Total 1,200
Saurabh:
(i) On ` 8,000 @ 10% p.a. for 9 months 600
(ii) On ` 4,000 @ 10% p.a. for 3 months 100
(iii) On ` 5,000 @ 10% p.a. for 2 months 83
Total 783

Unsolved Questions

1. Anita, Lalita and Manju are partners in a firm sharing profits and losses equally with fixed capital of
` 2,50,000 each. On 1st January, 2020, Anita and Lalita gave loans of ` 1,50,000 each to the firm
whereas Manju took a loan of ` 1,00,000 from the firm on the same date. It was agreed among the
partners that Manju will pay interest @ 6% p.a. Interest on loan from partners was paid on 30th April,
2020. The firm closes its books on 31st March each year. Pass the Journal entries in the books of the
firm for the year ended 31st March, 2020.
2. Akhil and Supreet entered into partnership on 1st April, 2018. They agreed that out of profits:
(i) Akhil will receive a salary of ` 500 per month;
(ii) Interest on capitals will be allowed @ 6% p.a.; and
(iii) Remaining profits will be divided equally.
Akhil contributed a capital of ` 50,000 on 1st April, 2018 but Supreet brought in his capital of ` 1,00,000 on
1st July, 2018. During the year ended 31st March, 2019, the drawings were: Akhil ` 15,000 and Supreet
` 20,000. Profit before salary and interest was ` 50,000. Prepare Profit and Loss Appropriation Account
and the Capital Accounts of the partners.
3. Satish and Parkash are partners in a business with fixed capitals of ` 50,000 and ` 30,000 respectively.
They are entitled to interest on the fixed capitals @ 5% p.a. but not on Current Account. Satish is
entitled to a salary of ` 100 per month which is not yet drawn. Drawings are permitted interest free
to the extent of opening credit balance in the Current Account. Drawings in excess of the limit are
subject to interest at a flat rate of 8% irrespective of the date of withdrawal. The opening balances
in the current accounts are Satish ` 1,500 and Parkash ` 2,000 respectively. Drawings of each partner
are ` 3,000.
Net profit for the year ended 31st March, 2019 was ` 15,000. Divisible profits are to be shared—Satish 60%
and Parkash 40% up to first ` 4,000. Balance is shared equally.
Prepare Profit and Loss Appropriation Account and Partners’ Capital and Current Accounts.
4. Ram, Shyam and Mohan are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1.
During the half year ended 30th September, 2019, their Capital Accounts remained unchanged at
` 3,00,000; ` 2,00,000 and ` 1,50,000 respectively.
Their Current Account balances on 1st April, 2019 were:
Ram : ` 60,000 (Cr.);
Shyam : ` 42,750 (Dr.);
Mohan : ` 32,750 (Dr.).
During the half year ended 30th September, 2019 Ram withdrew ` 1,000 in the beginning of each
month, Mohan withdrew ` 2,000 at the end of each month while Shyam withdrew ` 9,000 during
the period of six months.
Their Partnership Deed provides that:
(i) Partners are allowed interest on capital @ 5% p.a.
(ii) Partners are allowed or charged interest on Current Account balances @ 4% p.a.