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| Capital Introduced | Capital Withdrawn | |||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.
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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
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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