Question

v e Ur any protit-sharing ratio being given, partners will share profit and loss equally.
Hlustration 31 (Calculation of Interest on Capital. Drawings Against Profits and Drawings Against
Capital). X and Y are partners sharing profits in the ratio of 3: 2. On 31st March, 2017 after
closing the books of account, their capitals are 10,00,000 and 12,50,000 respectively. On
Ist May, 2016, X had introduced an additional capital of 2,50,000 and Y withdrew 1,25,000
from his capital. On 1st October, 2016, X withdrew 5,00,000 from his capital and Y introduced
0,25,000. After closing the accounts, it was discovered that Interest on Capital @ 6% p.a. has
been omitted. During the year ended 31st March, 2017, X's drawings and Y's drawings were
32,50,000 and 1,25,000. Profits (before interest on Capital) during the year were 5,00,000
Calculate Interest on Capital if the capitals are (a) fixed and (b) fluctuating​

Answer 1

Answer:

Calculation of Interest on Capital. Drawings Against Profits and Drawings Against

Capital). X and Y are partners sharing profits in the ratio of 3: 2. On 31st March, 2017 after

closing the books of account, their capitals are 10,00,000 and 12,50,000 respectively. On

Ist May, 2016, X had introduced an additional capital of 2,50,000 and Y withdrew 1,25,000

from his capital. On 1st October, 2016, X withdrew 5,00,000 from his capital and Y introduced

0,25,000. After closing the accounts, it was discovered that Interest on Capital @ 6% p.a. has

been omitted. During the year ended 31st March, 2017, X's drawings