Question

X, Y and Z were in partnership sharing profits and losses equally. 'Y' retires from the firm. After adjustments, his Capital Account shows a  credit balance of ₹ 3,00,000 as on 1st April, 2016. Balance due to 'Y' is to be paid in three equal annual instalments along with interest @ 10% p.a. Prepare Y's Loan Account until he is paid the amount due to him. The firm closes its books on 31st March every year.

Answer 1

 

Y’s Loan A/c

Date		Particulars	Amount (₹)	Date	Particulars	Amount (₹)
2017				2016
March 31		To Bank A/c (1,00,000 + 30,000)	1,30,000	April 01	By Y’s Capital A/c	3,00,000
March 31		To balance c/d	2,00,000	2017
				March 31	By Interest on Loan A/c	30,000
					(3,00,000 × 10/100)
			3,30,000			3,30,000
2018				2017
March 31		To Bank A/c (1,00,000 + 20,000)	1,20,000	April 01	By balance b/d	2,00,000
March 31		To balance c/d	1,00,000	2018
				March 31	By Interest on Loan A/c	20,000
					(2,00,000 × 10/100)
			2,20,000			2,20,000
2019				2018
March 31		To Bank A/c (1,00,000 + 10,000)	1,10,000	April 01	By balance b/d	1,00,000
				2019
				March 31	By Interest on Loan A/c	10,000
					(1,00,000 × 10/100)
			1,10,000			1,10,000