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Question
Read the following hypothetical situation and answer the following question on its basis:
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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:
During the year, Rudra withdrew ₹ 50,000 at the end of each quarter; Dev withdrew ₹ 50,000 in the beginning of each half year; and Shiv withdrew ₹ 70,000 at the end of each half year. The profit of the firm for the year ended 31-3-2022 before allowing interest on Shiv’s loan was ₹ 7,06,750. |
What will the amount of interest on drawings of the partners?
Options
Rudra ₹ 2,250; Dev ₹ 4,500 and Shiv ₹ 2,100
Rudra ₹ 9,000; Dev ₹ 9,000 and Shiv ₹ 4,200
Rudra ₹ 4,500; Dev ₹ 4,500 and Shiv ₹ 2,100
Rudra ₹ 24,000; Dev ₹ 12,000 and Shiv ₹ 16,800
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Solution
Rudra ₹ 9,000; Dev ₹ 9,000 and Shiv ₹ 4,200
Explanation:
Interest on drawings is calculated using the formula:
Interest = `"Total drawings" xx "Average period"/12 xx "Rate"/100`
Rate = 12% p.a.
(1) Rudra withdrew ₹ 50,000 at the end of each quarter.
There are 4 quarters in a year.
Total drawing = 50,000 × 4
= ₹ 2,00,000
Since drawings are made at the end of each quarter, the time periods are 9 months, 6 months, 3 months and 0 months.
Average period = `(9 + 6 + 3 + 0)/4`
= `18/4`
= 4.5 months
Interest on drawings = `2,00,000 xx 4.5/12 xx 12/100`
= ₹ 9,000
(2) Dev withdrew ₹ 50,000 at the beginning of each half-year.
There are 2 half-years in a year.
Total drawing = 50,000 × 2
= ₹ 1,00,000
Since drawings are made at the beginning of each half-year, the time periods are 12 months and 6 months.
Average period = `(12 + 6)/2`
= `18/2`
= 9 months
Interest on drawings = `1,00,000 xx 9/12 xx 12/100`
= ₹ 9,000
(3) Shiv withdrew ₹ 70,000 at the end of each half-year.
There are 2 half-years in a year.
Total drawing = 70,000 × 2
= ₹ 1,40,000
Since drawings are made at the end of each half-year, the time periods are 6 months and 0 months.
Average period = `(6 + 0)/2`
= `6/2`
= 3 months
Interest on drawings = `1,40,000 xx 3/12 xx 12/100`
= ₹ 4,200
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|
|
Sukesh (Rs) |
Verma* (Rs) |
|
Capital Accounts |
40,000 |
40,000 |
|
Current Accounts |
(Cr.) 7,200 |
(Cr.) 2,800 |
|
Drawings |
10,850 |
8,150 |
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|
Rakesh |
Month |
Rs. |
|
|
May 31, 2019 |
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|
|
June 30, 2019 |
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|
|
August 31, 2019 |
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|
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|
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|
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|
|
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700 |
|
Rohan |
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| 1. | Gain on sale of fixed tangible assets | 12,50,000 |
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| Particulars | 31.3.2020 (₹) | 31.3.2019 (₹) |
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Read the following information and answer the given question:
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| S. No. | Particulars | Amount (₹) |
| 1. | Gain on sale of fixed tangible assets | 12,50,000 |
| 2. | Goodwill written off | 7,80,000 |
| 3. | Transfer to General Reserve | 8,75,000 |
| 4. | Provision for taxation | 4,37,500 |
Additional information:
| Particulars | 31.3.2020 (₹) | 31.3.2019 (₹) |
| Prepaid Expenses | 7,50,000 | 5,00,000 |
| Inventory | 10,50,000 | 8,20,000 |
| Trade Payable | 4,50,000 | 3,50,000 |
| Trade Receivables | 6,20,000 | 5,90,000 |
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Read the following hypothetical situation and answer the following question on its basis:
|
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?
Richa and Anmol are partners sharing profits in the ratio of 3 : 2 with capitals of ₹ 2,50,000 and ₹ 1,50,000 respectively. Interest on capital is agreed @6% p.a. Anmol is to be allowed an annual salary of ₹ 12,500. During the year ended 31st March 2023, the profits of the year prior to calculation of interest on capital but after charging Anmol’s salary amounted to ₹ 62,000. A provision of 5% of this profit is to be made in respect of manager’s commission.
Following is their Profit & Loss Appropriation Account.
| Particulars | (₹) | Particulars | (₹) |
| To Interest on Capital | By Profit & loss account (After manager’s commission) | ___(2)___ | |
| Richa | ______ | ||
| Anmol | ______ | ||
| To Anmol’s Salary a/c | 12,500 | ||
| To Profit transferred to: | |||
| Richa’s Capital A/C (1) | ___(1)___ | ||
| Anmol’s Capital A/c | ______ | ||
| ______ | ______ |
The amount to be reflected in blank (1) will be:
