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On March 31, 2017, After the Close of Books of Accounts, the Capital Accounts of Ram, Shyam and Mohan Showed Balance of Rs 24,000 Rs 18,000 and Rs 12,000, Respectively. - Accountancy

Sum

On March 31, 2017, after the close of books of accounts, the capital accounts of Ram, Shyam and Mohan showed balance of Rs 24,000 Rs 18,000 and Rs 12,000, respectively. It was later discovered that interest on capital @ 5% had been omitted. The profit for the year ended March 31, 2017, amounted to Rs 36,000 and the partner’s drawings had been Ram, Rs 3,600; Shyam, Rs 4,500 and Mohan, Rs 2,700. The profit sharing ratio of Ram, Shyam and Mohan was 3:2:1. Calculate interest on capital.

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Solution

 

Ram

Shyam

Mohan

Capital on March 31

24,000

18,000

12,000

Add: Drawings

3,600

4,500

2,700

Less: Profit (3:2:1)

(18,000)

(12,000)

(6,000)

Capital April 01, 2012

9,600

10,500

8,700

Here, Interest on Capital = `"Opening Capital" × "Rate"/100`

Ram’s = `9600 xx 5/100 = "Rs"   480`

Shyam’s = `10500 xx 5/100 = "Rs"  525`

Mohan's = `8700 xx 5/100 = "Rs"  435`

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APPEARS IN

NCERT Class 12 Accountancy - Not-for-profit Organisation and Partnership Accounts
Chapter 2 Accounting for Partnership : Basic Concepts
Numerical Questions | Q 26 | Page 104
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