62. Simrat and Bir are partners in a firm sharing profits and losses in the ratio of 3:2. On 31st March, 2020 36
closing the books of account, their Capital Accounts stood at 4,80,000 and 6,00,000 respectively
1st May, 2019, Simrat introduced an additional capital of 1,20,000 and Bir withdrew 60,000 from
capital. On 1st October, 2019, Simrat withdrew * 2,40,000 from her capital and Bir introduced 3.000
Interest on capital is allowed at 6% p.a. Subsequently, it was noticed that interest on capital @ 6% pa ba
been omitted. Profit for the year ended 31st March, 2020 amounted to 2,40,000 and the partners' drawing
had been: Simrat— 1,20,000 and Bir- 60,000.
Answers
Simrat and Bir are partners in a firm sharing profits and losses in the ratio of 3:2. On 31st March, 2020 36
closing the books of account, their Capital Accounts stood at 4,80,000 and 6,00,000 respectively
1st May, 2019, Simrat introduced an additional capital of 1,20,000 and Bir withdrew 60,000 from
capital. On 1st October, 2019, Simrat withdrew * 2,40,000 from her capital and Bir introduced 3.000
Interest on capital is allowed at 6% p.a. Subsequently, it was noticed that interest on capital @ 6% pa ba
been omitted. Profit for the year ended 31st March, 2020 amounted to 2,40,000 and the partners' drawing
had been: Simrat— 1,20,000 and Bir- 60,000.
Explanation:
First Capital Allocation
Interest on Simrat's Capital
(60,000 * 6* 1 ) / (100*12) + (7,20,000 * 6 * 5) / (100*12) + (4,800,000* 6 * 6 )/ (100*12) = 35,000
Interest on Bir's Capital
(3,60,000*6*1) / (100*12) + (3,00,000* 6 *5)/(100*12) + (60,00,000*6*6)/(100*12) = 27,300
Second Capital Allocation
Interest on Simrat's Capital
(5 , 7,600 * 6* 1)/ (100*12) + (6,96,000 * 6*5) / (100*12) + (4,5,600 * 6 * 6)/(100*12)
=33,960
Interest on Bir's Capital
(3,24,000* 6 *1)/(100*12) + (2,64,000 * 6*5)/ (100*12) + (5,64,000*6*6)/(100*12)
=25,140
Answer:
First fluctuations capital Simrat = 35400 Bir= 27300
Second fluctuate capital simrat= 33960 Bir= 25140
Explanation: