Siddhant & Anjali are partners sharing profits in the ratio of 1:1.
Their capital Account Balance at the end of the year was 540000
and 600000. Distributable profit was 80000, Interest on Capital
credited to Sid and Anjali was 10000 and 12000, Their Drawings
are 8000 and 9000. Anjali is Entitled to a salary of 2000 per month
If Accounts are maintained as per Fixed Capital method then What is the
opening capital?
Answers
Answer:
Republic of India, a chief minister is the head of government of each of the twenty-eight states and three of the eight union territories. According to the Constitution of India, at the state-level, the governor is de jure head, but de facto executive authority rests with the chief minister.
Answer:
Profit and Loss Appropriation a/c
(for the year ended 31st March,2014)
Dr. Cr.
Particulars Amount Particulars Amount
To Interest on Capital
- Jay
- Vijay
4800
3000 By Profit and Loss a/c 7800
7800 7800
Working Note:
1. Calculation of interest on capital:
Jay's interest on Capital= 9/100 * 80000 = 7200
Vijay's Interest on capital= 9/100 * 50000 = 4500
Total interest= 7200+4500= 11700
2. Proportionate interest on Capital:
Jay's share= [7200/11700]*7800
= 4800
Vijay's share= [4500/11700]*7800
= 3000
Note: interest on capital can only be provided to the extent of the profits.