Question

Ravi and Kishan are partners sharing profits in the ratio of 3 : 2. Their fixed capitals on 1st April 2023 were ₹ 2,00,000 and ₹ 1,00,000 respectively. The partnership deed provides that: Interest on capital is to be allowed at 6% p.a. and charged on drawings @ 10% p.a. Ravi was to be paid a salary of ₹ 5,000 p.m., whereas Kishan was to get a commission of 4% on sales. It is ascertained that Ravi withdrew ₹ 4,000 at the end of every month and Kishan withdrew ₹ 12,000 at the end of every quarter. Sales for the year ended 31st March 2024 amounted to ₹ 3,00,000. The net profit of the firm before making the above adjustments was ₹ 56,000.

Ravi’s Current Account Balance will be:

Options

• Dr. ₹ 2,200

• Cr. ₹ 2,200

• Dr. ₹ 14,200

• Dr. ₹ 5,400

Answer 1

Dr. ₹ 2,200

Explanation:

Total Ravi’s Drawing = 4,000 × 12

= ₹ 48,000

Interest on Ravi’s Drawings = `48,000 xx 10/100 xx 5.5/12`

= ₹ 2,200

Dr.	Ravi’s Current Account		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Drawings	48,000	By Profit and Loss Appropriation A/c	48,000
To Interest on Drawings	2,200	By Balance c/d	2,200
	50,200		50,200