Question 48 Chapter 2 of Class 12 Part - 1 VK Publication

Question 48 Chapter 2 of Class 12 Part – 1

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The solution of Question 48 Chapter 2 of Class 12 Part – 1: –

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

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

48. On 31st March, 2018 after the closing of books of accounts, the capital accounts of P, Q and R showed balance of Rs. 38,400, Rs. 28,800 and Rs. 19,200 respectively. But, it was later discovered that interest on capital @ 5% had been omitted. The profit for the year ended 31st March, 2018 amounted to Rs. 57,600 and the partners drawings had been P Rs. 5,760, Q Rs. 7,200 and R Rs. 4,320. The profit-sharing ratio of P, Qand R was 3:2:1. Calculate interest on capital.

The solution of Question 48 Chapter 2 of Class 12 Part – 1: –

As interest on Capitals will be calculated on opening balance of capital , hence first opening capital will be calculated as follows:

Particulars	P Rs.	Q Rs.	R Rs.
Closing Capital as on 31.3.2018	38,400	28,800	19,200
Less: Profit distributed, i.e. 57,600 in the ratio 3:2:1	(28,000)	(19,200)	(9,600)
Add: drawings made during the year	5,760	7,200	4,320
Opening Capital as on 1.4.2017	15,360	16,800	13,920

Thus , Interest on Partners’ capital = Capital ×( Rate)/100
Interest on P’s capital = 15,360 ×5/100 = Rs. 768
Interest on Q’s capital = 16,800×5/100 = Rs. 840
Interest on R’s capital = 13,920×5/100 = Rs. 696

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