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M.190 An Aid to Accountancy—CBSE XII

2. Calculation of Share of Profit (31st March, 2017):
Adjusted Profit = ` 33,000 – ` 5,000 (Z’s Salary) – ` 5,000 (Interest on Partners’ Capitals) = ` 23,000.
2 1
X’s Share of Profit = ` 23,000 × = ` 11,500; Y’s Share of Profit = ` 23,000 × = ` 5,750;
4 4
1
Z’s Share of Profit = ` 23,000 × = ` 5,750.
4
3. Calculation of Share of Profit (31st March, 2018):
Adjusted Profit = ` 45,000 – ` 5,000 (Z’s Salary) – ` 5,000 (Interest on Partners’ Capitals) = ` 35,000.
2 1
X’s Share of Profit = ` 35,000 × = ` 17,500; Y’s Share of Profit = ` 35,000 × = ` 8,750;
4 4
1
Z’s Share of Profit = ` 35,000 × = ` 8,750.
4
(b) (i) Interest on Mohan’s Drawings = ` 24,000 × 6 ¥ 10 = 1,200` .
12 100
5.5 10
(ii) Interest on Mohan’s Drawings = ` 24,000 × ¥ = 1,100.`
12 100
Notes: (i) When the dates of drawings are not given, interest will be calculated for average period,
i.e., 6 months.
(ii) When a partner draws a fixed sum at the end of each month for 12 months, interest on
total drawings will be equal to interest of 5.5 months (i.e., average period) at an agreed
rate per annum.
14. Queen’s Club
Dr. INCOME AND EXPENDITURE ACCOUNT for the year ended 31st March, 2018 Cr.
Expenditure ` Income `
To Salaries 1,66,000 By Subscriptions 1,80,000
To Stationery (Consumed): Less: Subscriptions for
Opening Stock 7,200 2016–17 12,000
Add: Purchases 32,000 2018–19 18,000 30,000 1,50,000
39,200 By Interest on Investments 65,000
Less: Closing Stock 5,400 33,800 Add: Accrued Interest (WN 1) 10,000 75,000
To Rent 48,000 By Sale of Concert Tickets 2,47,000
Less: Paid for March, 2017 4,000 Less: Concert Expenses 58,000 1,89,000
44,000 By Donations (WN 2) 1,12,000
Add: Outstanding for March, 2018 4,000 48,000
To Telephone Expenses 8,000
Less: Prepaid (` 3,000 × 2/3) 2,000 6,000
To Sports Material:
Opening Stock 12,000
Add: Purchases 78,000
90,000
Less: Closing Stock 21,000 69,000
To Miscellaneous Expenses 24,000
To Depreciation on Building 80,000
(` 8,00,000 × 10/100)
To Surplus, i.e., Excess of Income
over Expenditure 99,200
5,26,000 5,26,000