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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Vinod and Mohan are partners sharing profits and losses in the ratio of 4 : 3. From the following Balance Sheet, calculate interest on capital @ 6% p.a. for the year ended 31st March, 2025:
BALANCE SHEET as at 31st March, 2025
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Capital A/cs: | Sundry Assets | 2,76,000 | |
| Vinod | 1,60,000 | ||
| Mohan | 80,000 | ||
| Profit & Loss Appropriation A/c (2024-25) | 36,000 | ||
| Total | 2,76,000 | Total | 2,76,000 |
During the year, Vinod’s drawings were ₹20,000 and Mohan’s drawings were ₹12,000. Profit during the year was ₹64,000.
Calculation of Opening Capital
| Particulars | Vinod (₹) | Mohan (₹) |
|---|---|---|
| Closing Capital | 1,60,000 | 80,000 |
| Add: Drawings | 20,000 | 12,000 |
| Less: Share of Profit credited (4 : 3 of ₹28,000) | 16,000 | 12,000 |
| Opening Capital | 1,64,000 | 80,000 |
Interest on capital @ 6% p.a.: Vinod = ₹1,64,000 × 6% = ₹9,840; Mohan = ₹80,000 × 6% = ₹4,800.
Note: Of the ₹64,000 profit, ₹36,000 remains in the Profit & Loss Appropriation A/c; only ₹28,000 was credited to the Capital Accounts in the 4 : 3 ratio.
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 "T.S. Grewal Class 12 Chapter 1 Q.28 - Accounting for Partnership Firm Fundamentals", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Accounting for Partnership Firm – Fundamentals.
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