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2.14 Double Entry Book Keeping—CBSE XII
Illustration 8.
X and Y are partners. As per the terms of agreement interest is allowed on capitals @ 8% p.a.
and charged on drawings @ 10% p.a. X withdrew ` 20,000 per month at the end of each month
and Y withdrew ` 60,000 at the end of each quarter. You are required to fill up the missing
figures (?) in the following accounts:

PROFIT AND LOSS APPROPRIATION ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `
To ? ? By Profit and loss A/c (Net Profit) ?
To Interest on Capital A/cs: By Interest on Drawings A/cs:
X 80,000 X ?
Y ? 1,44,000 Y ? ?
To Profit transferred to Capital A/cs:
X (2/3) ?
Y (1/3) 1,40,000 ?
? ?

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X (`) Y (`) Particulars X (`) Y (`)

To ? ? ? By ? ? ?
To ? ? ? By X’s Salary A/c 1,80,000
To ? ? ? By ? ? ?
By ? ? ?
? ? ? ?
Solution: PROFIT AND LOSS APPROPRIATION ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Particulars ` Particulars `

To X’s Salary A/c 1,80,000 By Profit and loss A/c (Net Profit) 7,24,000
To Interest on Capital A/cs: By Interest on Drawings A/cs:
X 80,000 X 11,000
Y 64,000 1,44,000 Y 9,000 20,000
To Profit transferred to Capital A/cs:
X (2/3) 2,80,000
Y (1/3) 1,40,000 4,20,000
7,44,000 7,44,000

Dr. PARTNERS’ CURRENT ACCOUNTS Cr.
Particulars X (`) Y (`) Particulars X (`) Y (`)

To Drawings A/c 2,40,000 2,40,000 By Balance b/d 10,00,000 8,00,000
To Interest on Drawings A/c 11,000 9,000 By X’s Salary A/c 1,80,000
To Balance c/d 12,89,000 7,55,000 By Interest on Capital A/c 80,000 64,000
By Profit and Loss App. A/c 2,80,000 1,40,000
15,40,000 10,04,000 15,40,000 10,04,000