PARTNERSHIP FUNDAMENTALS

PRACTICE QUESTIONS ON INTEREST ON CAPITAL

1.A & B started a partnership business with a capital of

Rs.10,00,000 and 15,00,000 respectively.They agreed
to share profits and losses in the ratio of 1:3.
The partnership deed provided for interest on capital
@ 10% p.a.Calculate Interest on capital for each of the
partners and complete the following capital a/c.
Dr. PARTNERS' CAPITAL A/C c
particulars X y particulars A B
Date Date
By Balance
To drawings 40000 30000 c/d
BY bank(
To interest on additional
drawings 2500 1500 capital)
3000 4000
BY salary
By 2000 3000
commission
By Interest
on capital
BY P&L
appropriation 1500 4500
To balance c/d a/c

Total TOTAL
BY BAL b/d
 2.A & B started a partnership business with a capital of
Rs.8,00,000 and 10,00,000 respectively.They agreed to
share profits and losses in the ratio of 2:3.
The partnership deed provided for interest on capital
@ 5% p.a.
Calculate Interest on capital for each of the partners
and complete the following capital a/c.
Dr. PARTNERS' CAPITAL A/C c
particulars X y particulars A B
Date Date
By Balance
To drawings 20000 30000 c/d
BY bank(
To interest on additional
drawings 1500 2500 capital)
10000 4000
BY salary
By 5000 9000
commission
By Interest
on capital
BY P&L
appropriation 20000 30000
To balance c/d a/c

Total TOTAL
BY BAL b/d
 2.A & B started a partnership business with a capital of
Rs.6,00,000 and 12,00,000 respectively.They agreed to
share profits and losses in the ratio of 4:5.
The partnership deed provided for interest on capital
@6% p.a.
Calculate Interest on capital for each of the partners
and complete the following capital a/c.
Dr. PARTNERS' CAPITAL A/C c
particulars X y particulars A B
Date Date
By Balance
To drawings 25000 35000 c/d
BY bank(
To interest on additional
drawings 1500 2500 capital)
10000 4000
BY salary
By 5000 9000
commission
By Interest
on capital
BY P&L
appropriation
To balance c/d a/c
4000 5000

Total TOTAL
BY BAL b/d
 3.A & B started a partnership business with a capital of
Rs.6,00,000 and 12,00,000 respectively.They agreed to
share profits and losses in the ratio of 1:4.
The partnership deed provided for interest on capital
@8% p.a.
The profits as per P&L was Rs.250000.
Calculate Interest on capital for each of the partners
and complete the following capital a/c.
Dr. PARTNERS' CAPITAL A/C c
particulars X y particulars A B
Date Date
By Balance
To drawings 10000 15000 c/d
BY bank(
To interest on additional
drawings 1500 2500 capital)
10000 4000
BY salary
By 5000 9000
commission
By Interest
on capital
BY P&L
appropriation
To balance c/d a/c

Total TOTAL
BY BAL b/d
 4. 3.A & B started a partnership business with a capital
of Rs.10,00,000 and 12,00,000 respectively.They
agreed to share profits and losses in the ratio of 1:4.
The partnership deed provided for interest on capital
@10% p.a.
The profits as per P&L was Rs.200000.
Calculate Interest on capital for each of the partners
and complete the following capital a/c.
Dr. PARTNERS' CAPITAL A/C cr.
particulars X y particulars A B
Date Date
By Balance
To drawings 25000 35000 c/d
BY bank(
To interest on additional
drawings 1500 2500 capital)
nil- nil
BY salary
By nil nil
commission
By Interest
on capital
BY P&L
appropriation
To balance c/d a/c

Total TOTAL
BY BAL b/d
 5.A & B started a partnership business with a capital of
Rs.5,00,000 and 4,00,000 respectively. They agreed to
share profits and losses in the ratio of 1:4.
The partnership deed provided for interest on capital
@5% p.a.
The profits as per P&L was Rs.20000.
Calculate Interest on capital for each of the partners
and complete the following capital a/c.
Dr. PARTNERS' CAPITAL A/C cr.
particulars X y particulars A B
Date Date
By Balance
To drawings 20000 25000 c/d
BY bank(
To interest on additional
drawings nil nil capital)
nil- nil
BY salary
By nil nil
commission
By Interest
on capital
BY P&L
appropriation
To balance c/d a/c

Total TOTAL
BY BAL b/d
 6. A & B started a partnership business with a capital of
Rs.10,00,000 and 8,00,000 respectively. They agreed to
share profits and losses in the ratio of 1:4.
The partnership deed provided for interest on capital
@6% p.a.
The profits as per P&L was Rs.100000.
Calculate Interest on capital for each of the partners
and complete the following capital a/c.
Dr. PARTNERS' CAPITAL A/C cr.
particulars X y particulars A B
Date Date
By Balance
To drawings 20000 20000 c/d
BY bank(
To interest on additional
drawings nil nil capital)
nil- nil
BY salary
By nil nil
commission
By Interest
on capital
BY P&L
appropriation
To balance c/d a/c

Total TOTAL
BY BAL b/d
 7. A & B started a partnership business with a capital of Rs.5,00,000
and 6,00,000 respectively. They agreed to share profits and losses in
the ratio of 1:4.

The partnership deed provided for interest on capital @5% p.a.

The P&L showed a loss of Rs.10000.

Calculate Interest on capital for each of the partners and complete

the following capital a/c.
Dr. PARTNERS' CAPITAL A/C cr.
particulars X y particulars A B
Date Date
By Balance
To drawings 10000 30000 c/d
BY bank(
To interest on additional
drawings nil nil capital)
nil- nil
BY salary
By nil nil
commission
By Interest
on capital
BY P&L
appropriation
To balance c/d a/c

Total TOTAL
BY BAL b/d
 8. A & B started a partnership business with a capital of Rs.15,00,000
and 10,00,000 respectively. They agreed to share profits and losses
in the ratio of 1:4.The partnership deed provided for interest on
capital @10% p.a.

The P&L showed a profit of Rs.100000.The deed

stated that interest on capital to be provided even if
involves the firm in the loss.
Calculate Interest on capital for each of the partners and complete
the following capital a/c.
Dr. PARTNERS' CAPITAL A/C cr.
particulars X y particulars A B
Date Date
By Balance
To drawings 20000 30000 c/d

BY bank(
To interest on additional
drawings nil nil capital)

By Interest
on capital

BY P&L
appropriation
To balance c/d a/c

Total TOTAL
BY BAL b/d
 8. A & B started a partnership business with a capital of Rs.12,00,000
and 8,00,000 respectively. They agreed to share profits and losses in
the ratio of 1:4.The partnership deed provided for interest on capital
@10% p.a.

The P&L showed a profit of Rs.1,80,000.The deed

stated that interest on capital to be provided even if
involves the firm in the loss.
Calculate Interest on capital for each of the partners and complete
the following capital a/c.
Dr. PARTNERS' CAPITAL A/C cr.
particulars X y particulars A B
Date Date
By Balance
To drawings 40000 60000 c/d

BY bank(
To interest on additional
drawings nil nil capital)

By Interest
on capital

BY P&L
appropriation
To balance c/d a/c

Total TOTAL
BY BAL b/d
 9. A & B started a partnership business with a capital of Rs.15,00,000
and 12,00,000 respectively. They agreed to share profits and losses
in the ratio of 1:4.The partnership deed provided for interest on
capital @5% p.a.

The P&L showed a profit of Rs.1,50,000.The deed

stated that interest on capital to be provided even if
involves the firm in the loss.
Calculate Interest on capital for each of the partners and complete
the following capital a/c.
Dr. PARTNERS' CAPITAL A/C cr.
particulars X y particulars A B
Date Date
By Balance
To drawings 40000 50000 c/d

BY bank(
To interest on additional
drawings nil nil capital)

By Interest
on capital

BY P&L
appropriation
To balance c/d a/c

Total TOTAL
BY BAL b/d
 10.. A & B started a partnership business with a capital of
Rs.4,00,000 and 8,00,000 respectively. They agreed to share profits
and losses in the ratio of 1:4.The partnership deed provided for
interest on capital @10% p.a.

The P&L showed a profit of Rs.1,00,000.

Calculate Interest on capital for each of the partners and complete
the following capital a/c.
Dr. PARTNERS' CAPITAL A/C cr.
particulars X y particulars A B
Date Date
By Balance
To drawings 20000 40000 c/d

BY bank(
To interest on additional
drawings nil nil capital)

By Interest
on capital

BY P&L
appropriation
To balance c/d a/c

Total TOTAL
BY BAL b/d