Question

Ram and Shyam are partners in a firm sharing profits in the ratio of 3: 2. On 1st April, 2020, their fixed
capitals were 3,00,000 and 2,50,000 respectively. On 1st October, they decided that their total capital
(Fixed) should be * 6,00,000 in their profit-sharing ratio. Accordingly, they introduced extra capital or
withdrew excess capital. The Partnership Deed provided for the following:
(i) Interest on capital @ 12% p.a.
(ii) Interest on Drawings @ 18% p.a.
(iii) A monthly salary of 2,000 to Ram and a quarterly salary of 4,500 to Shyam.
The drawings of Ram and Shyam were as follows:
Particulars
Ram
Shyam
₹
20,000
20,000
15,000
25,000
On 30th September, 2020
On 31st December, 2020
During the year ended 31st March, 2021, the firm earned a net profit of 1,50,000. 10% of this profit was
to be transferred to General Reserve.
You are required to prepare:
(i) Profit and Loss Appropriation Account;
(ii) Partners' Capital Accounts, and Partners' Current Accounts.​

Answer 1

Answer:

Ram profit 17,505

Shyam profit 11,670

partners capital account

Ram 3,60,000

Shyam 2,40,000

partners current account

Ram 38405

Shyam 16595

Answer 2

Explanation:

Capital account 3,60,000 for ram and 2,40,000 for shyam

Current account 38,405 for ram and 16,595 for shyam

Thank you