A .Q. 8 -X and_ Y were partners in a firm sharing profits in the ratio of 2 : 1.

On 1st
pril, 2 0 2 I their fixed capitals were ~6 20 000 and ~2 40 000 respectively. On 1st
·
Nov ·, 202 I. th ey decided '
that their total 'capital ' '
(fixed) should be ~9,00,000 m ·
· therr
pro?t sharing ratio. Accordingly, they introduced extra capital or ~ithdrew excess
capital. The partnership deed provided for the following:
(i) A monthly salary of ~4,000 to X.
(ii) Interest on Capital @ 9% p.a.
(iii) Interest on drawing.@ 12% p.a.
The drawings of X and Y during the year were as follows :
X y
~ ~
June 1, 2021 20,000 28,000
Nov. 30, 2021 40,000
Feb. 1,2022 15,000 10,000
During the year ended 31.3.2022 the frrm earned a net profit of t3,00,000. 20% of
· this profit was to be transferred to general reserve. You are required to prepare :
(i) Profit and Loss Appropriation Account,
(ii) Capital Accounts of partners, and
(iii) Current Accounts of partners.

\ r
~L,l SUU ; lJ ~3,300.]
into par tner ship
. Q. 2.6 · On 1st April, 2021, Precious, Noble and Perfect entered
wi t b cap ital s of ~60,000; ~50,000 and ~30,000 respectively.
r, 2021. The
Per fe~ t adv anc e d ~10,000 as loan to the partnership on 1st Octobe
1

Par tne rsh ip Dee d con tain ed the following clauses :

(i) Inte rest on capitals @ 6% p.a.
of eac h
(ii) Inte rest on drawings @ 6% p.a. Eac h dre w t4,0 00 at the end
qua rter com men cing from 30t h June, 2021.
(iii) Wo rkin g par tner s Precious and Nob le to get salaries of
t20 0 and ~300
per month. .,
(iv) Inte rest on loa n was giv en to Per fect @6 % p.a.
f70,000
(v) Pro fits and losses are to be sha red in the ratio of 4 : 2 : 1 up to
and abo ve ~70,000 equally.
(before above
Ne t pro fit of the firm for the yea r end ed 31s t Ma rch , 202 2
adj ustm ent s) was ~1,11,000.

J
 Prepar e Profit and Loss Approp riation Accoun t and Personal Accounts of the
Partne rs assumi ng capital s to be fixed. / ·
[Ans. Share of Profit : Precious ~49,127; Noble ~29,127; and Perfect fl9,126;
Curren t Accou nt balanc es: Precious ~38,767; Noble ~19,367 and Perfect t4,566.]
 ~ \U] OJIIU ~ VII ___, _ _....... -

Q. IS. Raj, Mehak and Divya were partners in a firm sharing profits and 10Sifea
die DfiO of 2 · 2 : J. Their respec~ve capitals were _: f ~,00,000, f 4,00,000.:
f.2,00,000. The partnership deed provided for the followmg •
(a) lnteiest on capital @ 8% per annum.
(b) ln1erest on drawings @ 6% per annum.
(c) Interest on partner's loan to the firm @ 5% per annum.
During the year, Raj had withdrawn f 12,000 on 1st October, 2021, while Mdit
withdrew ?60,000 on 1st December, 2021.
On 1st January, 2022, Divya had given a loan off 1,20,000 to the firm.
Pass the necessary journal entries in the books of the firm for the rou--,
transactions for the year ended 31st March, 2022 :
 1.115
~CCOUNTING FO~PARTNERSHIP FIRMS_:- FUNDAMENTALS
(1) All ow ing inte res t on Raj:-s~apitaL - - - - - - - - -
- - - - - - - - - -

(ii) Ch arg ing int ere st on Me hak 's drawings.

(iii) Pro vid ing inte res t on loa n giv en to the firm by Divya.
count / Profit and Loss
Also pas s tra nsf er ent ries in the Profit and Loss Ac
(C.B.S.E. 2023, Kera/a, MP .)
Appropriation Ac cou nt, as the cas e ma y be.
[Ans. Int ere st on Ra j's Capital f48 ,00 0; Interest on
Me hak 's Drawings f 1,200
and Int ere st on Div ya' s Lo an f 1,500.]

·· ·· ·· ·· ·· ·· ·· ·· ··· ··· ···

m ··
to··
Pa·· ··
rtn ·-
er
Int ere st on Lo an by the Fir ,(
•
fits and losses equally. On 1st
l

✓ Q. 16. A, Ba nd Ca re par tne rs in a firm sha ring pro

202 3 the ir fix ed cap ital s we re f 8,0 0,0 00, f 6,00,000 and f 6,00,000
Ap ril,
pec tive ly. On 1st Oc tob er 202 3, A adv anc ed f 1,0 0,0 00 to the firm whereas C too k
res
s agreed among the partners
a loan of f 1,5 0,0 00 fro m the frrm on the same date. It wa
that C wil l pay int ere st @ 10% p.a.
fit for the yea r end ed 31s t Ma rch , 202 4 am oun ted to f 4,20,000 before allowing
Pro
ng inte res t on loa ns. Pas s jou rna l ent ries for inte res t on loans and prepare
or chargi
Current Ac cou nts of the partners.
ances : A f 1,41,500 (Cr.);
[Ans. Div isib le Pro fit f 4,24,500; Current Account Bal
Bf 1,41,500 (Cr .) and C ~1, 34, 000 (Cr.)] be credited
rr~n t Acc oun t. It will