Question

Sarita and Veena were partners in a firm sharing profits and losses in the ratio of 3:2. The balance in their capital and current accounts as on 1st April, 2024 were as under:

Particulars	Sarita (₹)	Veena (₹)
Capital Accounts	4,00,000	3,00,000
Current Accounts	80,000 (Cr.)	60,000 (Dr.)

The partnership deed provided that Sarita was to be paid a salary @ ₹ 2,000 per month, whereas Veena was to get a commission of ₹ 30,000 for the year. Interest on capital was to be allowed @ 8% p.a. The drawings of Sarita and Veena for the year ended 31st March, 2025 were ₹ 20,000 and ₹ 15,000 respectively. After preparing the Profit and Loss Appropriation Account for the year ended 31st March, 2025, ₹ 36,000 and ₹ 24,000 were credited respectively to the current accounts of Sarita and Veena as their share of divisible profit.

Prepare the current accounts of Sarita and Veena.

Answer 1

Dr.	Partners’ Current Accounts For the year ended 31st March, 2025				Cr.
Particulars	Sarita (₹)	Veena (₹)	Particulars	Sarita (₹)	Veena (₹)
To Balance b/d		60,000	By Balance b/d	80,000
To Drawings	20,000	15,000	By Salary	24,000
To Balance c/d	1,52,000	3,000	By Commission		30,000
			By Int. on Capital	32,000	24,000
			By P&L Appr. A/c	36,000	24,000
	1,72,000	78,000		1,72,000	78,000

Working note:

Let’s calculate the Interest on Capital:

Sarita = `4,00,000 xx 8/100`

= 32,000

Veena = `3,00,000 xx 8/100`

= 24,000

Sarita’s Salary = 2,000 × 12

= 24,000