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प्रश्न
Saanvi and Jigyasu were partners sharing profits in the ratio of 3 : 2. The Current Account balances of partners on 1st April, 2025 were as follows:
| Saanvi | ₹ 15,000 (Cr.) |
| Jigyasu | ₹ 6,500 (Dr.) |
The terms of their partnership agreement were as follows:
- Partners are allowed or charged interest on their Current Account balances @ 6% per annum.
- Interest on Drawings to be charged @ 7% p.a.
- Commission @ 4% on net profit after charging such commission is to be allowed to Jigyasu.
Saanvi withdrew ₹ 10,000 per month at the beginning of each month for 1st 3 months and then increased it to ₹ 20,000 p.m.
Jigyasu withdrew ₹ 40,000 each three times during the year at an interval of 4 months between each drawing starting from 1st April, 2025.
Saanvi brought her personal car in the firm for business purposes on 1st August, 2025 at a valuation of ₹ 3,00,000, but this transaction was not recorded in the books. The firm has a policy of charging depreciation @ 20% p.a. on written down value method.
Rent account included ₹ 60,000 paid for Jigyasu's residential house on 1st January, 2026.
The firm earned a profit of ₹ 1,75,000 for the year ended 31st March 2026 before considering the above mentioned transactions.
You are required to:
- Calculate correct Net Profit of the Firm for the year 2025-26.
- Pass Journal Entries for appropriation of profit among the partners as per their agreement.
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उत्तर
| Ascertainment of Correct Net Profit | |
|---|---|
| Particulars | ₹ |
| Net Profit (As given) | 1,75,000 |
| Less: Depreciation of Car | |
| \[(300,000 \times \frac{20}{100} \times \frac{8}{12})\] | 40,000 |
| 1,35,000 | |
| Add: Rent for Residential house of Jigyasu | 60,000 |
| Correct Net Profit | 1,95,000 |
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2026 | ||||
| March 31 | Profit & Loss A/c Dr. | 1,95,000 | ||
| To Profit & Loss Appropriation A/c | 1,95,000 | |||
| (Net profit transferred) | ||||
| " | Interest on Saanvi’s Current A/c Dr. | 900 | ||
| To Saanvi’s Current A/c | 900 | |||
| (Interest allowed on Saanvi’s Current A/c) | ||||
| " | Profit & Loss Appropriation A/c Dr. | 900 | ||
| To Interest on Saanvi’s Current A/c | 900 | |||
| (Interest on Saanvi’s Current A/c closed) | ||||
| " | Jigyasu’s Current A/c Dr. | 390 | ||
| To Interest on Jigyasu’s Current A/c | 390 | |||
| (Interest charged on Jigyasu’s Current A/c) | ||||
| ” | Interest on Jigyasu’s Current A/c Dr. | 390 | ||
| To Profit & Loss Appropriation A/c | 390 | |||
| (Interest on Jigyasu’s Current A/c closed) | ||||
| ” | Commission to Partners A/c Dr. | 7,500 | ||
| To Jigyasu’s Current A/c | 7,500 | |||
| (Commission to Jigyasu provided) | ||||
| ” | Profit & Loss Appropriation A/c Dr. | 7,500 | ||
| To Commission to Partners A/c | 7,500 | |||
| (Commission to Partners A/c closed) | ||||
| ” | Saanvi’s Current A/c (1) Dr. | 7,175 | ||
| Jigyasu’s Current A/c (1) Dr. | 6,650 | |||
| To Interest on Drawings A/c | 13,825 | |||
| (Interest on Drawings charged) | ||||
| ” | Interest on Drawings A/c Dr. | 13,825 | ||
| To Profit & Loss Appropriation A/c | 13,825 | |||
| (Interest on Drawings closed) | ||||
| ” | Profit & Loss Appropriation A/c Dr. | 2,00,815 | ||
| To Saanvi’s Current A/c | 1,20,489 | |||
| To Jigyasu’s Current A/c | 80,326 | |||
| (Divisible profit transferred to partners Current Accounts in their profit sharing ratio 3 : 2) |
Working Note:
(1) Interest on Drawings
For Saanvi : Average Period : (For Drawings of ₹ 10,000 p.m.)
$$\text{For first 3 months } \frac{3 + 1}{2} = \text{ 2 months}$$
$$\text{For next 9 months } = \text{ 9 months}$$
11 months
Average Period (For Drawings of ₹ 20,000 p.m.)
$$\frac{9 + 1}{2} = \text{5 months}$$
$$\begin{align*} \text{Interest on Drawings : } \quad &(₹10,000 \times 3) \times \frac{7}{100} \times \frac{11}{12} &= \quad 1,925 \\ &(₹20,000 \times 9) \times \frac{7}{100} \times \frac{5}{12} &= \quad \underline{5,250} \\ & &= \quad {7,175} \end{align*}$$
For Jigyasu : Average Period:
$$\frac{\text{Time Left After First Drawing + Time Left After Last Drawing}}{2}$$
$$\frac{12 + 4}{2} = \text{8 months}$$
$$\begin{align*} \text{Interest on Drawings : } \quad &(₹40,000 \times 3) \times \frac{7}{100} \times \frac{8}{12} &= \quad 5,600 \\ &60,000 \times \frac{7}{100} \times \frac{3}{12} &= \quad \underline{1,050} \\ & &= \quad {6,650} \end{align*}$$
| Dr. | PROFIT & LOSS APPROPRIATION A/C |
Cr. | ||
|---|---|---|---|---|
| Particulars | Amount (₹) |
Particulars | Amount (₹) | Amount (₹) |
| To Intt. on Saanvi’s Current A/c | 900 | By Profit & Loss A/c | ||
| To Comm. to Partners A/c | (Net Profit) | 1,95,000 | ||
| - Jigyasu | By Intt. on Jigyasu’s | |||
| $(4/104 \times 1,95,000)$ | 7,500 | Current A/c | 390 | |
| To Saanvi’s Current A/c | By Intt. on Drawings A/c | |||
| $(3/5 \times 2,00,815)$ | 1,20,489 | Saanvi | 7,175 | |
| To Jigyasu’s Current A/c | Jigyasu | 6,650 | 13,825 | |
| $(2/5 \times 2,00,815)$ | 80,326 | |||
| Total | 2,09,215 | Total | 2,09,215 | |
