# Question 16 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-16 - CH-2 - Usha +2 Book 2018 - Solution

Question 16 Chapter 2 of +2-Part-1

16. (Capital a/c’s/Interest on Drawings) Prepare Capital accounts of partners Muthu and Krishnan from the following information, assuming that their capitals are fluctuating:

 Muthu Krishnan Capital on 1-4-18 50,000 35,000 Drawings during 2018-19 2,400 1,200 Interest on Capital 6% 6% Interest on Drawings 6% 6% Share in profits for 2018-19 7,000 5,000 Salary …. 1,800 Commission 1,000 …..

### The solution of Question 16 Chapter 2 of +2 Part-1: –

 Partners’ Capital Accounts Particulars Muthu Krishnan Particulars Muthu Krishnan To Drawings A/c 2,400 1,200 By Balance B/d 50,000 35,000 To Interest on Drawings A/c 78 33 By Share in profits 7,000 5,000 By Interest on Capital A/c 3,000 2,100 By Salary – 1,800 By Commission 1,000 – To Balance c/d 58,522 42,667 61,000 43,900 61,000 43,900

Working Notes: –
Calculation of interest on partner’s Drawings
If partners withdrawal the same amount of drawing on a regular basis then we can calculate the interest on drawing with help of following formula: –
Interest on Drawing = Total Drawings X Rate of Interest X Period/12 Months
Rate of Interest = 6%
Period = the period/time will be calculated with the help of following formula: –

 Period = Time left after 1st withdrawal + Time left after Last withdrawal 2

1. Calculation of interest on Muthu’s Drawings:

Muthu’s withdrawal at the beginning of every month = 200 p.m. Therefore, total drawings of the year= Rs.2,400.
It means 1st withdrawal has made on 01-04-2018
So, Time left from 1-4-2018 to 1-3-19 in 12 Months
And last withdrawal has made on 1-3-2019
So, Time left from 1-3-2019 to 31-3-2019 is 1 month.

Now, 0put this time period in the formula

 Period = 11 + 1 2
 Period = 13 2
 Period = 6.5

Total Drawings = 2,400

 Interest on Drawing = 2,400 X 6 X 6.5 100 12 Interest on Drawing = 78

2. Calculation of interest on Krishnan’s Drawings:

Muthu’s withdrawal at the end of every month = 100 p.m. Therefore, total drawings of the year = Rs.1,200.
It means 1st withdrawal has made on 31-04-2018
So, Time left from 31-4-2018 to 31-3-19 in 11 Months
And last withdrawal has made on 31-3-2019
So, Time left from 31-1-3-2019 to 31-3-2019 is 0 months.
Now, put this time period in the formula:

 Period = 11 + 0 2
 Period = 11 2
 Period = 5.5

Total Drawings = 1,200

 Interest on Drawing = 1,200 X 6 X 5.5 100 12 Interest on Drawing = 33