Accountancy, asked by khushiupreti4, 6 months ago

Q. 11 (B). A and B are partners in a firm. Their capitals as on 1st April, 2016 were
2,10,000 and 90,000 respectively. They share profits in the ratio of 2 : 1. On 1st
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August, 2016, they decided that their capitals should be readjusted according to their
profit sharing ratio. The necessary adjustments in the capitals were made by
withdrawing or introducing cash. Interest on capital is allowed at 12% p.a. Compute
interest on capitals for the year ending on 31st March, 2017.
[Ans. Interest on Capitals : A *24,400; B 11,600.]
72 an​

Answers

Answered by lodhiyal16
2

Answer:

Explanation:

Calculation of interest on Capital A

On 1st April : Amount introduced 210000

                    No. of months 31 March 12%

Interest : 25200

On 1st April : Amount Withdrawn 10000

                    No. of months 31 March 8%

Interest : 800

Total = 200000

T. Interest : 24400

Calculation of interest on Capital B

On 1st April : Amount introduced 90000

                    No. of months 31 March 12%

Interest : 10800

On 1st April : Amount Withdrawn 10000

                    No. of months 31 March 8%

Interest : 800

Total = 100000

T. Interest : 11600

Capital Adjustment for both:

Capital A before adjustment :                   210000

capital B before adjustment :                      90000

total capital                                                300000

Capital of A    ( 300000 *2/3)                200000

Capital A withdraw        (210000 - 200000)  10000

Capital B( 300000 *1/3)                           100000

Cash B withdraw ( 100000 - 90000)       10000

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