Question 60 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 60 Chapter 2 of +2- Part-

Question 60 Chapter 2 of +2-Part-1

60. (Capital ratio/ interest on capital) X and Y commenced business on 1st Jan.2014 with capitals of Rs2,00,000 and Rs.1,00,000 respectively. They decided to share profits in their capital ratio. You are required to calculate the capital ratio on the basis of the following information:

  Capital Introduced Capital Withdrawn 
  X Y X Y
31st March 2014 20,000 10,000
30th June 2014 40,000 10,000
30th September 2014 30,000 20,000
1st Nov 2014 10,000 30,000
1st Dec 2014 20,000 20,000

Also, calculate interest on capital if it is 12% p.a.

 

The solution of Question 60 Chapter 2 of +2 Part-1: – 

 

Calculation of Capital ratio:
X
Date
Capital
(A)
Months
(B)
Product
(C=A*B)
1-1-14 2,00,000 3 6,00,000
31-3-14 1,90,000 3 5,70,000
30-6-14 2,00,000 3 6,90,000
30-9-14 2,00,000 1 2,10,000
1-11-14 2,00,000 1 1,80,000
1-12-14 2,00,000 1 2,00,000
       
      24,50,000

 

Calculation of Capital ratio:
Y
Date
Capital
(A)
Months
(B)
Product
(C=A*B)
1-1-14 1,00,000 3 3,00,000
31-3-14 1,20,000 3 3,60,000
30-6-14 1,10,000 3 3,30,000
30-9-14 1,40,000 1 1,40,000
1-11-14 1,50,000 1 1,50,000
1-12-14 1,30,000 1 1,30,000
       
      14,10,000

 

 Capital ratio : 24,50,000: 14,10,000 or 245:141

Working Note: –

1. Interest on capital:

X = 56,700 X 12 X 1
        100 12
  = 24,500/-        
             

 

Y = 14,10,000 X 12 X 1
        100 12
  = 14,100/-        
             



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Also, Check out the solved question of previous Chapters: –

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

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

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2 Book 1 min - Question 60 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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