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Question
Menon and Thomas are partners in a firm. They share profits equally. Their monthly drawings are Rs 2,000 each. Interest on drawings is to be charged @ 10% p.a. Calculate interest on Menon’s drawings for the year 2006, assuming that money is withdrawn: (i) in the beginning of every month, (ii) in the middle of every month, and (iii) at the end of every month.
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Solution
Case (i)
If they withdraw money in the beginning of each month
Interest of drawings = Total drawings × Rate × `13/[2 xx 12]`
Menon’s = 24,000 × `10/100 xx 13/[2 xx 12]` = Rs 1,300
Thomas’s = 24,000 × `10/100 xx 13/[2 xx 12]` = Rs 1,300
Case (ii)
If they withdraw in the middle of every month
Interest on Drawings = Total drawings × `10/100 xx 6/12`
Menon’s = 24,000 × `10/100 xx 6/12` = Rs 1,200
Thomas’s = 24,000 × `10/100 xx 6/12` = Rs 1,200
Case (iii)
If they withdraw at the end of every month.
Interest on drawings = Total drawings × `"Rate"/100` x `11/[2 xx 12]`
Menon’s = 24,000 × `10/100` x `11/[2 xx 12]` = Rs 1,100
Thomas’s = 24,000 × `10/100` x `11/[2 xx 12]` = Rs 1,100
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|
Balance Sheet as at March 31, 2017 |
|||
|
|
Amount |
|
Amount |
|
Liabilities |
Rs |
Assets |
Rs |
|
Neelkant’s Capital |
10,00,000 |
Sundry Assets |
30,00,000 |
|
Mahadev’s Capital |
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|
|
|
Neelkant’s Current Account |
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|
|
|
Mahadev’s Current Account |
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|
|
|
Profit and Loss Apprpriation |
|
|
|
|
(March 2017) |
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|
|
|
|
30,00,000 |
|
30,00,000 |
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|
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:
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How much amount of net profit will be transferred to the Profit and Loss Appropriation A/c?
