Question 44 Chapter 2 of +2-A
Table of Contents
44. Show how the following will be recorded in the Capital Accounts of the Partners Sohan and
Mohan when their capitals are fluctuating:
| Sohan | Mohan | |
| Capital on 1st April 2018 | 4,00,000 | 3,00,000 |
| Drawings during the year ended 31st March 2019 | 50,000 | 30,000 |
| Interest on Capital | 5% | 5% |
| Interest on Drawings | 1,250 | 750 |
| Share of Profit for the year ended 31st March 2019 | 60,000 | 50,000 |
| Partner’s Salary | 36,000 | ….. |
| Commission | 5,000 | 3,000 |
The solution of Question 44 Chapter 2 of +2-A
| Partners’ Capital Accounts for the year ended 31st March 2019 |
|||||
| Particulars |
Sohan |
Mohan | Particulars |
Sohan | Mohan |
| To Drawings A/c | 50,000 | 30,000 | By Balance B/d | 4,00,000 | 3,00,000 |
| To Interest on Drawings A/c | 1,250 | 750 | By Interest on Capital A/c *1 | 20,000 | 15,000 |
| By P&L Appropriation A/c | 60,000 | 50,000 | |||
| By P&L Appropriation A/c | 36,000 | – | |||
| By Commission A/c | 5,000 | 3,000 | |||
| To Balance c/d | 4,69,750 | 3,37,250 | |||
| 5,21,000 | 3,68,000 | 5,21,000 | 3,68,000 | ||
Working Note: –
*1Calculation of Interest on Sohan’s & Mohan’s Capital by Simple Method
Interest on Capital= Opening Capital X Rate of Interest
| Interest on Sohan’s Capital | = | 4,00,000 | X | 5 |
| 100 |
Interest on Sohan’s Capital = 20,000/-
| Interest on Mohan’s Capital | = | 3,00,000 | X | 5 |
| 100 |
Interest on Mohan’s Capital = 15,000/-
Comment if you have any questions.
Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
