Question 44 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 44 Chapter 2 of +2-A

Question 44 Chapter 2 of +2-A

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)

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

2 Book 1 min - Question 44 Chapter 2 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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