Question 40 Chapter 3 - Unimax Class 12 Part 1 - 2021

Question 40 Chapter 3 – Unimax Class 12 Part 1

Table of Contents

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 :

	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

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