Question

P, Q and R were partners in a firm sharing profits in 2 : 2 : 1 ratio. The Partnership Deed provided that on the death of a partner his executors will be entitled to the following:
(a) Interest on Capital @ 12% p.a.
(b) Interest on Drawings @ 18% p.a.
(c) Salary of ₹ 12,000 p.a.
(d) Share in the profit of the firm(up to the date of death) on the basis of previous year’s profit.
P died on 31st May, 2108. His capital was ₹ 80,000. He had withdrawn ₹ 15,000 and interest on his drawings was calculated as ₹ 1,200. Profit of the firm for the previous year ended 31st March, 2018 was ₹ 30,000.
Prepare P’s Capital Account to be rendered to his executors.

Answer 1

HEYA MATE YOUR ANSWER IS

80,000. He had withdrawn ₹ 15,000 and interest on his drawings was calculated as ₹ 1,200. Profit of the firm for the previous year ended 31st March, 2018 was ₹ 30,000.

Prepare P’s Capital

HOPE THIS HELPS ❤️

PLEASE MARK AS BRAINLIEST ❤️❤️

Answer 2

Calculation of Interest on Capital

P’s Capital Balance = Rs 80,000

Interest on Capital (for 2 months)  

Calculation of P’s Share of Profit

Profit for last year = Rs 30,000

∴ P’s Share of Profit (for 2 Months)