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Question
Rahul, Rohit and Karan started partnership business on April 1, 2019 with capitals of Rs 20,00,000, Rs 18,00,000 and Rs 16,00,000, respectively. The profit for the year ended March 2020 amounted to Rs 1,35,000 and the partner’s drawings had been Rahul Rs 50,000, Rohit Rs 50,000 and Karan Rs 40,000. The profits are distributed among partner’s in the ratio of 3:2:1. Calculate the interest on capital @ 5% p.a.
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Solution
Interest on Capital
Rahul = 20,00,000 × `5/100` = Rs 100000
Rohit = 18,00,000 × `5/100` = Rs 90000
Karan = 16,00,000 × `5/100` = Rs 80000
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|
Sukesh (Rs) |
Verma* (Rs) |
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Capital Accounts |
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|
Rakesh |
Month |
Rs. |
|
|
May 31, 2019 |
600 |
|
|
June 30, 2019 |
500 |
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|
August 31, 2019 |
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|
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|
|
December 31, 2019 |
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|
|
January 31, 2020 |
300 |
|
|
March 01, 2020 |
700 |
|
Rohan |
At the beginning of each month |
400 |
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Balance Sheet as at March 31, 2017 |
|||
|
|
Amount |
|
Amount |
|
Liabilities |
Rs |
Assets |
Rs |
|
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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 |
1,00,000 |
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|
|
Profit and Loss Apprpriation |
|
|
|
|
(March 2017) |
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|
|
30,00,000 |
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30,00,000 |
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|
|
Rs |
|
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4,000 |
|
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10,000 |
|
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4,000 |
|
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12,000 |
|
December 31 |
4,000 |
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| 1. | Gain on sale of fixed tangible assets | 12,50,000 |
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