Question

Ali and Bahadur are partners in a firm sharing and profit and losses as Ali 70% and Bahadur 30% .Their respective capital at 1 April 2018 stands as Ali 25000 and Bahadur 20000 .The partners are allowed intrest on capitals @5% P.A Drawing of the partners drawing the year ended 31 march 2019 amonted to Rs 3500 and Rs 2500 respectively.
profit for the year before charging interst on captials and annual salary of Bahadur @3000 amounted to 40000 10% of divisble profit is to be transferd
to reserve .
You are asked to show partners current account and capitals recording the above transaction.​

Answer 1

Ali- 25000*5%=1250

Bahadur=20000*5%= 1000 2250 By net profit 40000 To reserve 40000*10% 4000   Bahadur's salary 3000   To profit T/f to

Ali's Capital A/c  21525

Bahadur's Capital A/c 9225 30750   Total 40000 Total 40000                            PARTNERS CAPITAL ACCOUNT Particulars ALI BAHADUR Particulars ALIBAHADUR  To bal c/d 25000 20000 By bal b/d 25000 20000 Total 25000 20000 Total 2500020000                                 PARTNERS CURRENT ACCOUNT

 Particulars ALIBAHADUR  Particulars ALI BAHADUR To Drawings3500  2500 By interest on capital 1250 1000    By salary  3000    By P/L Appropriation A/c 21525 9225 By bal c/d19275  10725    Total22775  13225 Total 22775 13225