Page 32 - MA-12

1.20 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. X, Y and Z commenced business on 1st April, 2017 as partners with capitals of ` 4,00,000; ` 12,00,000
and ` 6,00,000. They mutually agreed for:
(i) 10% p.a. interest on capitals;
(ii) 15% p.a. interest on drawings;
(iii) X will get 5% commission on sales;
(iv) Y will get ` 50,000 per month as salary and
(v) Balance of profit to be distributed in the ratio of 2 : 2 : 1.
Z also provided a loan of ` 2,00,000 @ 8% p.a. to the firm.
Total sales during the first year (i.e., 2017–18) were ` 80,00,000 and the net profit at the end of the
year was ` 21,72,500 (after providing interest on loan).
During the year, X introduced ` 12,00,000 to the firm as additional capital on 30th September, 2017
but Y withdrew ` 2,00,000 out of his capital on the same date.
Their drawings were:

Partners On 30th June, On 30th Sept., On 31st Dec.,
2017 (`) 2017 (`) 2017 (`)
X 1,00,000 1,80,000 2,00,000
Y 1,60,000 1,60,000 1,60,000
Z 1,80,000 60,000 1,20,000
You are required to prepare Profit and Loss Appropriation Account for the year ended 31st March,
2018 and Partners’ Capital and Current Accounts.

2. X, Y and Z started business on 1st April, 2017 with capitals of ` 1,00,000; ` 60,000 and ` 40,000
respectively. Their Partnership Deed provides that:
(i) interest on partners’ capitals should be provided @ 5% p.a.
(ii) interest on partners’ drawings should be charged @ 10% p.a.
(Drawings: X—` 10,000; Y—` 6,000 and Z—` 4,000)
(iii) the partners are entitled to a partnership salary of ` 5,000 each per annum.
(iv) X is entitled to a commission @ 10% on the profit before charging the above provisions.