Question

Date
Tonle withdraws total Rs 3.000 till
the year ended 31-3-2014
He withdrew 95% at the end
lech quelltene dusing the year
ended. 31-3-2019. Interest is
Cherged @ 12% fo.o. find out
Imdbyest on deving'ond boss
Journal entry.​

Answer 1

Answer:

1. When Capitals Are Fixed

Calculation of Opening Capital

X Y

Closing capital 4,80,000 6,00,000

Add:withdrawal 2,40,000 60,000

Less: Add capital (1,20,000) (3,00,000)

Opening capital 6,00,000 3,60,000

Calculation of Interest on capital

X Y

Interest on capital 36,000 21,600

Add: Int on add capital 6600 9000

(1,20,000*6%*11/12) (3,00,000*6%*6/12)

Less:Interest on capital ( 7200) (3300)

(2,40,000*6%*6/12) (60,000*6%*11/12)

Total 35,400 27,300

2. When Capitals Are Fluctuating

Calculation of Opening capital

X Y

Closing capital 4,80,000 6,00,000

Add;withdrawal of capital 2,40,000 60,000

Drawings 1,20,000 60,000

Less: Add capital (1,20,000) (3,00,000)

Share of profit (1,44,000) (96,000)

Opening capital 5,76,000 3,24,000

Calculation of Interest on Capital

X Y

Interest on opening capital 34560 19440

Add;Interest on add capital 6600 9000

(1,20,000*6%*11/12) (3,00,000*6%*6/12)

Less: Interest on capital withdrawn (7200) (3300)

Total 33,960 25140