Question 40 Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 40 Chapter 2 – Unimax Class 12 Part 1

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The solution of Question 40 Chapter 2 – Unimax Class 12 Part 1:

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

40. Prepare the Capital Accounts of partners P and Q from the following details, assuming that their capitals are fluctuating :

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	P (Rs.)	Q (Rs.)
Capital as on 1st April, 2020	200000	150000
Drawings	40000	10000
Interest on Capital	6%	6%
Interest on Drawings	5%	5%
Share of Profit	30000	20000
Salary	12000	9600
Commission	500	–
Interest on Loan Account	–	3000

The solution of Question 40 Chapter 2 – Unimax Class 12 Part 1:

Partner’s Capital Accounts’

Particulars	P	Q	Particulars	P	Q
To drawings	40000	10000	By Balance b/d	200000	150000
To Interest on drawings A/c	1000	250	By Profit	30000	20000
To Bal c/d	213500	178350	By Salary A/c	12000	9600
			By Commission	500	–
			By Int. on Capital A/c	12000	9000

	254500	188600		254500	188600

Working Notes :
(1) P’s Interest on drawings = Rs. 40000 x 5% x 6/12
=Rs. 1000
Q’s Interest on drawings = Rs. 10000 x 5% x 6/12 = Rs. 250
(2) Interest on loan to Q should be credited to his loan account or to a separate outstanding interest account

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T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)