ANSWERS

1. Interest payable A Rs.7,250 and B Rs.4,000.

2. Interest on capital will be recorded in partners’ current account when capitals are fixed.

3. X is correct because in the absence of partnership deed profits are to be shared equally and no
interest on capital in the absence of partnership deed to any partner.
4. Y is correct because in the absence of partnership deed as per the Section 12(a) of Indian
Partnership Act, 1932 is applicable according to which every partner is entitled to participate in
the conduct of the firm’s business but not interest on capital will be allowed to any partner
because there is not partnership deed.

5. Interest on X’s Capital Rs.13,000 and Y Rs.8,000

6. Interest on Kumar’s Capital Rs.12,000 + 16,000 = 28,000
7. Interest on A’s Capital 12,812.50
8. Interest on X’s Capital Rs.11,500 and Y’s Capital Rs.8,150

Challenge-1 : Case 1: Profit to Vinod Rs.18,000 and Kumar Rs.12,000

Case 2: No interest on capital to partners; Loss to Vinod Rs.12,000; Kumar 8,000.
Case 3: Interest on capital to Vinod Rs.10,000; Kumar Rs.5,000; Profit to Vinod
Rs.3,000 and Kumar Rs.2,000.
Case 4: Distribute in the ratio of Appropriation Vinod Rs.6,000; Kumar Rs.3,000.
Case 5: Interest on capital to Vinod Rs.10,000; Kumar Rs.5,000; Loss to Vinod Rs.3,600
and Kumar Rs.2,400.
Case 6: Interest on capital to Vinod Rs.10,000; Kumar Rs.5,000; Loss to Vinod
Rs.12,000 and Kumar Rs.8,000.

Note for teachers and students

In case you have any doubt or any inquiry please go through the
Ultimate Book of Accountancy CBSE class 12th
OR
Contact the respected author: authorcbse@gmail.com

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