Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Advertisement
Advertisement
Advertisement
Advertisement
Question 66 Chapter 6 of +2-A
66. P, Q and R were partners in a firm sharing profits in 2: 2: 1 ratio. The Partnership Deed provided that on the death of a partner his executors will be entitled to the following:
a Interest on Capital @ 12% p.a.
b Interest on Drawings @ 18% p.a.
c Salary of 12,000 p.a.
d Share in the profit of the firm up to the date of death on the basis of the previous year's profit.
P died on 31st May 2018. His capital was 80,000. He had withdrawn 15,000 and interest on his drawings was calculated as 1,200. Profit of the firm for the previous year ended 31st March 2018 was 30,000. Prepare P's Capital Account to be rendered to his executors.
Y’s Capital Account
| Particular |
Amount | Particular | Amount | ||
|---|---|---|---|---|---|
| To Drawings A/c | 15,000 | By Balance b/d | 80,000 | ||
| To Interest on Drawings A/c | 1,200 | By Interest on Capital A/c | 1,600 | ||
| To P’s Executor’s A/c | 69,400 | By Salary 12,000 × 2/12 | 2,000 | ||
| By Profit and Loss Suspense A/c | 2,000 | ||||
| 85,600 | 85,600 | ||||
Working Notes:
Calculation of Interest on Capital
P’s Capital Balance = Rs 80,000
| Interest on Capital for 2 months | = | 80,000 | X | 12 | X | 2 |
| 100 | 12 | |||||
| = | Rs 1,600 |
Calculation of P’s Share of Profit
Profit for last year = Rs 30,000
| ∴ P’s Share of Profit for 2 Months | = | 30,000 | X | 2 | X | 2 |
| 5 | 12 | |||||
| = | Rs 2,000 |
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Q.No.66 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Q.No.66 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1" instantly.
