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Question 21 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 21 Chapter 2 of +2- Part-
Q-21 - CH-2 - Usha +2 Book 2018 - Solution

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Question 21 Chapter 2 of +2-Part-1

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21. (Interest on Capital/Journal Entry) X and Y are in partnership with the ratio of 3:2. They are allowed interest on capital @12% p.a. on the opening capital and 10% p.a. on the additional capital contributed during the year. The opening capitals of X and Y on 1st April 2014 were Rs.30,000 and Rs.20,000 respectively. X, on 1st Aug 2014 made an addition of Rs.9,000 to his capital, while Y contributed Rs.27,000 on 1st October 2014 to his capital. Find out interest on capital for the year ending 31st March 2015 and pass journal entry relating thereto.

The solution of Question 21 Chapter 2 of +2 Part-1: – 

 
Date Particulars
XY
 Interest on opening Capital @12% for one year 3,6002,400
 Additional Capital on 1st August 2014 by X:   
 On 9,000 @10% for 8 months 600
 Additional Capital on 1st October 2014 by Y:  
 On 27,000 @10% for 6 months1,350
  4,2003,750

 

Journal
DateParticulars
L.F.DebitCredit
      
 Interest on Capital A/cDr. 7,950 
 To X’s Capital A/c   4,200
 To Y’s Capital A/c   3,750
 (Being interest on Capital allowed)   
     

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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