If the partner’s capitals are fixed, where will you record interest on drawings and share of profit of a partner? Post category:Accountancy Reading time:1 mins read SOLUTION Interest on Drawings: On the Debit of Current Account. Share of Profit: On the Credit of Current Account. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWrite two items of debit side of Current Accounts. Next PostMention two items that may appear on the debit side of a Partner’s Fixed Capital Account. You Might Also Like Under which type of activity will you classify ‘Issue of Equity Shares at Premium’ while preparing cash-flow statement? October 6, 2022 Asgar, Chaman and Dholu are partners in a firm. Their Capital Accounts stood at Rs. 6,00,000; Rs. 5,00,000 and Rs. 4,00,000 respectively on 1st April, 2017. They shared Profits and Losses in the proportion of 4 : 2 : 3. Partners are entitled to interest on capital @ 8% per annum and salary to Chaman and Dholu @ Rs. 7,000 per month and Rs. 10,000 per quarter respectively as per the provision of the Partnership Deed. Dholu’s share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of Rs. 1,10,000 p.a. Any deficiency arising on that account shall be met by Asgar. The profit for the year ended 31st March, 2018 amounted to Rs. 4,24,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018. July 22, 2022 Rahul, Sahil and Jatin were partners in a firm sharing profits and losses in the ratio of 4: 3: 2. Rahul died on 15th October, 2017. At that time, the capitals of Sahil and Jatin after all the adjustments were Rs. 3,56,000 and Rs. 2,44,000 respectively. Sahil and Jatin decided to adjust their capital according to their new profit-sharing ratio by opening current accounts. Calculate the new Capitals of Sahil and Jatin. (C.B.S.E. 2020; Mumbai, Chennai) September 27, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Under which type of activity will you classify ‘Issue of Equity Shares at Premium’ while preparing cash-flow statement? October 6, 2022
Asgar, Chaman and Dholu are partners in a firm. Their Capital Accounts stood at Rs. 6,00,000; Rs. 5,00,000 and Rs. 4,00,000 respectively on 1st April, 2017. They shared Profits and Losses in the proportion of 4 : 2 : 3. Partners are entitled to interest on capital @ 8% per annum and salary to Chaman and Dholu @ Rs. 7,000 per month and Rs. 10,000 per quarter respectively as per the provision of the Partnership Deed. Dholu’s share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of Rs. 1,10,000 p.a. Any deficiency arising on that account shall be met by Asgar. The profit for the year ended 31st March, 2018 amounted to Rs. 4,24,000. Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018. July 22, 2022
Rahul, Sahil and Jatin were partners in a firm sharing profits and losses in the ratio of 4: 3: 2. Rahul died on 15th October, 2017. At that time, the capitals of Sahil and Jatin after all the adjustments were Rs. 3,56,000 and Rs. 2,44,000 respectively. Sahil and Jatin decided to adjust their capital according to their new profit-sharing ratio by opening current accounts. Calculate the new Capitals of Sahil and Jatin. (C.B.S.E. 2020; Mumbai, Chennai) September 27, 2022