# The Capital Accounts of Moli and Golu Showed Balances of Rs 40,000 and Rs 20,000 as on April 01, 2016. - Accountancy

Ledger

The capital accounts of Moli and Golu showed balances of Rs 40,000 and Rs 20,000 as on April 01, 2016. They shared profits in the ratio of 3:2. They allowed interest on capital @ 10% p.a. and interest on drawings, @ 12 p.a. Golu advanced a loan of Rs 10,000 to the firm on August 01, 2016. During the year, Moli withdrew Rs 1,000 per month at the beginning of every month whereas Golu withdrew Rs 1,000 per month at the end of every month. Profit for the year, before the above mentioned adjustments was Rs 20,950. Calculate interest on drawings show distribution of profits and prepare partner’s capital accounts.

#### Solution

Interest on Moli’s Drawing = "Total Drawings" × "Rate"/100 xx 13/(2 xx 12)

= 12000 xx 12/100 xx 13/(2 xx 12)

= Rs 780

Interest on Golu’s Drawings =

"Total Drawing" × "Rate"/100 xx 11/(2 xx 12)

= 12000 xx 12/100 xx 11/(2 xx 12)

= Rs 660

Dr.                                                                                 Cr.

 Particulars Amount Rs Particulars Amount Rs Interest on Capital Profit and Loss Account 20,950 Moli 4,000 6,000 Interest on Drawings Golu 2,000 Moli 780 1,440 Interest on Partner’s Loan Golu 660 Golu’s {10,000 × (6/100) × (8/12)} 400 Profit transferred to Moli’s Capital {15,990 × (3/5)} 9,594 15,990 Golu’s Capital {15,990 × (2/5)} 6,396 22,390 22,390

Partners’ Capital Account

Dr.                                                                                  Cr.

 Particulars Moli Golu Particulars Moli Golu Drawings 12,000 12,000 Balance b/d 40,000 20,000 Interest on Drawing 780 660 Interest on Capital 4,000 2,000 Balance c/d 40,814 15,736 Profit and Loss Adjustment 9,544 6,396 53,594 28,396 53,594 28,396
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#### APPEARS IN

NCERT Class 12 Accountancy - Not-for-profit Organisation and Partnership Accounts
Chapter 2 Accounting for Partnership : Basic Concepts
Numerical Questions | Q 18 | Page 103