Page 56 - DEBKVOL-1

2.28 Double Entry Book Keeping—CBSE XII

14. If the Partners’ Capital Accounts are fixed where will the following be recorded?
(a) Salary payable to a partner, (b) Drawings made by a partner,
(c) Fresh capital introduced by a partner, (d) Share of profit of the firm,
(e) Share of loss of the firm, (f) Commission payable to a partner,
(g) Interest on capital, and (h) Interest on drawings.
[Ans.: On Credit Side of Current A/c—(a), (d), (f) and (g);
On Debit Side of Current A/c—(b), (e) and (h);
On Credit Side of Capital A/c—(c).]
15. Nusrat and Sonu were partners in a firm sharing profits in the ratio of 3 : 2. During the year ended
31st March, 2015 Nusrat had withdrawn ` 15,000. Interest on her drawings amounted to ` 300.
Pass necessary Journal entry for charging interest on drawings assuming that the capitals of the partners
were fixed. (Delhi 2016)
16. Tom and Harry were partners in a firm sharing profits in the ratio of 5 : 3. During the year ended
31st March, 2015 Tom had withdrawn ` 40,000. Interest on his drawings amounted to ` 2,000.
Pass necessary Journal entry for charging interest on drawings assuming that the capitals of the partners
were fluctuating. (AI 2016)
17. Manpreet and Jaspreet were partners sharing profits and losses in the ratio of 3 : 2. They decided that from
1st April, 2015 they will share profits and losses equally. On that date, the Balance Sheet of the firm had
credit balance of ` 1,00,000 in General Reserve. Jaspreet was of the opinion that it should be credited to the
Capital Accounts equally. Manpreet was of the opinion that it should be credited to the Capital Accounts
in their old profit-sharing ratio. Jaspreet agreed to the views of Manpreet. Explain what arguments must
have been put forward by Manpreet to which Jaspreet agreed.
18. Mahesh and Ramesh are partners with capitals of ` 50,000 and ` 60,000 respectively. On 1st January, 2018,
Mahesh gives a loan of ` 10,000 and Ramesh introduced ` 20,000 as additional capital. Profit for the year
ended 31st March, 2018 was ` 15,200. There is no Partnership Deed. Both Mahesh and Ramesh expect
interest @ 10% p.a. on the loan and additional capital advanced by them.
Show how the profits would be divided? Give reasons.
[Ans.: Divisible Profit—` 15,050 being Mahesh’s share and Ramesh’s share—` 7,525 each.]
[Hints: Reasons: (i) Interest on Partner’s loan will be allowed @ 6% p.a.
(ii) No interest on partner’s capital will be allowed.
(iii) Profits will be shared equally between partners.]
19. Jagmohan and Ramesh were partners with capital contribution of ` 10,00,000 and ` 5,00,000 respectively.
They do not have a Partnership Deed. Jagmohan wants that the firm should allow interest on capital @ 6%
p.a. Ramesh convinced Jagmohan that interest cannot be allowed on capital to which Jagmohan agreed
after discussion. What argument must have been put forward by Ramesh that convinced Jagmohan?
20. Sunil and Jatinder were partners in a firm. Their drawings during the year were ` 1,00,000 and ` 75,000
respectively. They do not have a Partnership Deed. Jatinder wanted that the firm should charge interest on
drawings @ 6% p.a. Sunil convinced Jatinder that interest cannot be charged on drawings to which Jatinder
agreed after discussion. What argument must have been put forward by Sunil that convinced Jatinder?
21. Black and White are partners with capitals of ` 30,000 and ` 20,000 respectively. Profits for the year ended
31st March, 2018 amounted to ` 27,100. It is agreed that 5% interest on capital shall be allowed. There is no
agreement regarding sharing of profits or partnership salary. Black is a whole-time partner whereas White
does not attend business regularly. Black claims ` 600 salary per month and 60% of balance profits. White
advanced ` 10,000 as loan and he now claims 10% interest.
State how you will settle the accounts.
[Ans.: Black (` ) White (`)
Interest on Capital @ 5% 1,500 1,000
Interest on Loan @ 6% p.a. ... 600
Residue of profit equally 12,000 12,000.]