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प्रश्न
The capital accounts of Moli and Golu showed balances of Rs 40,000 and Rs 20,000 as on April 01, 2019. They shared profits in the ratio of 3:2. They allowed interest on capital @ 10% p.a. and interest on drawings, @ 12 p.a. Golu advanced a loan of Rs 10,000 to the firm on August 01, 2019. During the year, Moli withdrew Rs 1,000 per month at the beginning of every month whereas Golu withdrew Rs 1,000 per month at the end of every month. Profit for the year, before the above mentioned adjustments was Rs 20,950. Calculate interest on drawings show distribution of profits and prepare partner’s capital accounts.
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उत्तर
| Dr. | Profit and Loss Adjustment Account | Cr. | |||
| Particulars | Amount (₹) | Amount (₹) | Particulars | Amount (₹) | Amount (₹) |
| To Interest on Capital A/c | 6,000 | By Profit and Loss A/c | 20,950 | ||
| Moli | 4,000 | By Interest on Drawings | 1,440 | ||
| Golu | 2,000 | Moli | 780 | ||
| To Interest on Golu’s loan A/c `(10,000xx6/100xx8/12)` | 400 | Golu | 660 | ||
| To Profit transferred to | 15,990 | ||||
| Moli’s Capital | 9,594 | ||||
| Golu’s Capital | 6,396 | ||||
| 22,390 | 22,390 | ||||
|
Dr. |
Partners’ Capital Account |
Cr. |
|||
|
Particulars |
Moli |
Golu |
Particulars |
Moli |
Golu |
|
To Drawings A/c |
12,000 |
12,000 |
By Balance b/d |
40,000 |
20,000 |
|
To Interest on Drawing A/c |
780 |
660 |
By Interest on Capital A/c |
4,000 |
2,000 |
|
To Balance c/d |
40,814 |
15,736 |
By Profit and Loss Adjustment A/c |
9,594 |
6,396 |
|
|
53,594 |
28,396 |
|
53,594 |
28,396 |
Working Note:
1) Interest on Golu’s Loan:
⇒ `10,000 xx 6/100 xx 8/12 = 400`
2) Calculation of Interest on Capital:
⇒ `"Total Capital" xx "Rate" xx "Average Period"/12`
Moli ⇒ `40,000 xx 10/100 xx 12/12` = 4,000
Golu ⇒ `20,000 xx 10/100 xx 12/12` = 2,000
3) Calculation of Interest on Drawings:
⇒ `"Total Drawings" xx "Rate" xx "Average Period"/12`
Moli ⇒ `12,000 xx (12)/(100) xx (6 1/2)/(12)` = Rs. 780
Golu ⇒ `12,000 xx (12)/(100) xx (5 1/2)/(12)` = Rs. 660
Note:
- If drawings is done at the beginning of every month, then interest on drawings is calculated of `6 1/2` months.
- If drawings is done at the ending of every month, then interest on drawings is calculated of `5 1/2` months.
- If rate of interest on loan is not given, then it will be charged always 6%.
- Interest on Partner’s Loan being a charge on profits, it to be shown as a deduction from Net Profit in Profit and Loss Appropriation Account or shown on the debit side of Profit and Loss Account.
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संबंधित प्रश्न
Why is Profit and Loss Adjustment Account prepared? Explain.
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Harshad Claims:
(i) He should be given interest @ 10% per annum on capital and loan;
(ii) Profit should be distributed in proportion of capital;
Dhiman Claims:
(i) Profits should be distributed equally;
(ii) He should be allowed Rs 2,000 p.m. as remuneration for the period he managed the business, in the absence of Harshad;
(iii) Interest on Capital and loan should be allowed @ 6% p.a.
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The following balances are extracted from the books of the firm on March 31, 2017.
|
|
Sukesh (Rs) |
Verma* (Rs) |
|
Capital Accounts |
40,000 |
40,000 |
|
Current Accounts |
(Cr.) 7,200 |
(Cr.) 2,800 |
|
Drawings |
10,850 |
8,150 |
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|
Liabilities |
Amount (Rs.) |
Amount (Rs.) |
Assets |
Amount (Rs.) |
Amount (Rs.) |
|
Mannu’s Capital |
30,000 |
40,000 | Drawings: | 6,000 | |
|
Shristhi’s Capital |
10,000 |
Mannu | 4,000 | ||
| Shristhi | 2,000 | ||||
| Other Assets | 34,000 | ||||
| 40,000 | 40,000 |
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|
Rakesh |
Month |
Rs |
|
|
May 31, 2016 |
600 |
|
|
June 30, 2016 |
500 |
|
|
August 31, 2016 |
1,000 |
|
|
November 1, 2016 |
400 |
|
|
December 31, 2016 |
1,500 |
|
|
January 31, 2017 |
300 |
|
|
March 01, 2017 |
700 |
|
Rohan |
At the beginning of each month |
400 |
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Mickey, Tom, and Jerry were partners in the ratio of 5 : 3 : 2. On 31st March 2021, their books reflected a net profit of ₹ 2,10,000. As per the terms of the partnership deed, they were entitled to interest on capital which amounted to ₹ 80,000, ₹ 60,000 and ₹ 40,000, respectively. Besides this, a salary of ₹ 60,000 each was payable to Mickey and Tom.
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In case the deed provides for payment of interest on capital but does not specify the rate, the interest will be paid at which rate per annum?
Consider the following statements
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Statement 2: Specified provisions are required to be mentioned in the partnership deed to charge interest on drawings.
Mohan and Sham are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:
"Shyam wants interest on capital to be credited @6% per annum".
What would be the journal entry for the Share of Profit or Loss after appropriation?
E, F and G are partners sharing profits in the ratio of 3 : 3 : 2. As per the partnership agreement, G is to get a minimum amount of ₹ 80,000 as his share of profits every year and any deficiency on this account is to be personally borne by E. The net profit for the year ended 31st March 2020 amounted to ₹ 3,12,000. What will be the amount of deficiency to be borne by E?
Pick the odd one out:
Rahul and Shubham are partners in a partnership Rahul withdraw ₹ 4,000 during the year as drawings. Interest on drawings is charged @ 15% p.a. The amount of interest on drawings at the end of the year will be ______.
Rehana, Shakina and Jasmine are partners. They share profit and loss in the ratio 1 : 2 : 3. Shakina is guaranteed to get ₹ 50,000 profit. Any deficiency that arises, will be borne by Rehana and Jasmine equally. During the year, they earned a profit of ₹ 6,00,000. How much money has to be given to her by Rehana and Jasmine?
Read the following information and answer the given question:
Krishika alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:
| S. No. | Particulars | Amount (₹) |
| 1. | Gain on sale of fixed tangible assets | 12,50,000 |
| 2. | Goodwill written off | 7,80,000 |
| 3. | Transfer to General Reserve | 8,75,000 |
| 4. | Provision for taxation | 4,37,500 |
Additional information:
| Particulars | 31.3.2020 (₹) | 31.3.2019 (₹) |
| Prepaid Expenses | 7,50,000 | 5,00,000 |
| Inventory | 10,50,000 | 8,20,000 |
| Trade Payable | 4,50,000 | 3,50,000 |
| Trade Receivables | 6,20,000 | 5,90,000 |
Cash from operating activities before tax will be ₹ ______.
Read the following information and answer the given question:
Krishika alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ₹ 31,25,000. This profit was arrived after taking into consideration the following items:
| S. No. | Particulars | Amount (₹) |
| 1. | Gain on sale of fixed tangible assets | 12,50,000 |
| 2. | Goodwill written off | 7,80,000 |
| 3. | Transfer to General Reserve | 8,75,000 |
| 4. | Provision for taxation | 4,37,500 |
Additional information:
| Particulars | 31.3.2020 (₹) | 31.3.2019 (₹) |
| Prepaid Expenses | 7,50,000 | 5,00,000 |
| Inventory | 10,50,000 | 8,20,000 |
| Trade Payable | 4,50,000 | 3,50,000 |
| Trade Receivables | 6,20,000 | 5,90,000 |
Cash flow from operating activities will be ₹ ______.
What will be the interest on drawing @ 12.5% p.a. for Abhishek if he withdraws ₹ 5,000 once in month?
If the interest on capital is omitted, what will be the journal entry during the situation?
Read the following hypothetical situation and answer the following question on its basis:
|
Rudra, Dev and Shiv were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Their fixed capitals were ₹ 6,00,000, ₹ 4,00,000, and ₹ 2,00,000, respectively. Besides his capital, Shiv had given a loan of ₹ 75,000 to the firm. Their partnership deed provided for the following:
During the year, Rudra withdrew ₹ 50,000 at the end of each quarter; Dev withdrew ₹ 50,000 in the beginning of each half year; and Shiv withdrew ₹ 70,000 at the end of each half year. The profit of the firm for the year ended 31-3-2022 before allowing interest on Shiv’s loan was ₹ 7,06,750. |
What will the amount of interest on drawings of the partners?
