Ramesh and Suresh were partners in a firm sharing profits in the ratio of their capitals contributed on commencement of business which were ₹80,000 and ₹ 60,000 respectively. The firm started business on April 1, 2018. According to the partnership agreement:
i. Interest on capital is to be allowed at 12%p.a. ii. Interest on drawings amounted to ₹ 2,000 for Ramesh and ₹2,500 for suresh . iii. Ramesh and Suresh are to get a monthly salary of ₹ 2,000 and ₹ 3,000.
Iv .Suresh is entitled to a commission of 10% commission on net profit. [ before including all the above adjustments,]
The profits for year ended March 31, 2019 before making above appropriation was ₹ 1,20,000. The drawings of Ramesh and Suresh were ₹ 40,000 and ₹ 50,000. Prepare Partners Capital Accounts :
i. When capitals are Fluctuating
ii When capitals are Fixed.
Answers
Answer:
Explanation:
ANSWER
Calculation of interest on capital:
(i) Interest on Ramesh's Capital: Rs.
From 1st April, 2017 to 30th June, 2017 =Rs.1,50,000×
100
8
×
12
3
3,000
From 1st July, 2017 to 31st March, 2018 =Rs.2,00,000×
100
8
×
12
9
12,000
15,000
(ii) Interest on Naresh's Capital:
From 1st April, 2017 to 30th June, 2017 =Rs.1,50,000×
100
8
×
12
3
3,000
From 1st July, 2017 to 31st March, 2018 =Rs.2,00,000×
100
8
×
12
9
12,000
15,000