Question

Shashi and Trisha were partners with fixed capitals of ₹ 5,00,000 and ₹ 3,00,000 on 1st April 2024. They are allowed interest on capital @ 6% p.a. and are charged interest on drawings @ 9% p.a. During the year, Shashi withdrew ₹ 6,000 per month at the beginning of every month, whereas Trisha withdrew ₹ 18,000 per quarter at the beginning of every quarter. The profits for the year before the above-mentioned adjustments were ₹ 1,20,440.

Shashi’s current account balance will be ______.

Options

• Dr. 5,510

• Cr. 5,510

• Dr. 4,970

• Cr. 4,970

Answer 1

Shashi’s current account balance will be Dr. 5,510.

Explanation:

Dr.	Shashi’s Current Account		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Drawings	72,000	By Interest on capital	30,000
To Interest on drawings	3,510	By Profit and Loss Appropriation A/c	40,000
		By Balance c/d	5,510
	75,510		75,510

Interest on drawings = `72,000 xx 9/100 xx 6.5/12`

= ₹ 3,510