Question 61 Chapter 2 of +2-Part-1
61. (Capital ratio/ interest on capital) X and Y commenced business on 1st April,2016 with a capital of Rs.20,000 and Rs.10,000 respectively. They agreed to share profits and losses in the ratio of their capitals. You are required to distribute the profit for the year which was Rs.42,200:
| Capital Introduced | Capital Withdrawn | |||
| X | Y | X | Y | |
| 1st June | 5,000 | – | – | – |
| 1st Aug | – | 3,000 | 2,000 | – |
| 30th Nov | 6,000 | – | – | 5,000 |
| 31-Mar | – | 5,000 | 1,000 | – |
The Content covered in this article:
The solution of Question 61 Chapter 2 of +2 Part-1: –
| Calculation of Capital ratio: |
|||||
| X | |||||
| Date |
Capital Brought |
Capital Withdrawn |
Net Capital (A) |
Months (B) |
Product (C=A*B) |
| 1-4-16 | 20,000 | – | 20,000 | 2 | 40,000 |
| 1-6-16 | 5,000 | – | 25,000 | 2 | 50,000 |
| 1-8-16 | – | 2,000 | 23,000 | 4 | 92,000 |
| 30-11-16 | 6,000 | – | 29,000 | 4 | 1,16,000 |
| 31-3-17 | 1,000 | 28,000 | 0 | – | |
| 2,98,000 | |||||
| Calculation of Capital ratio: |
|||||
| Y | |||||
| Date |
Capital Brought |
Capital Withdrawn |
Net Capital (A) |
Months (B) |
Product (C=A*B) |
| 1-4-16 | 10,000 | – | 10,000 | 4 | 40,000 |
| 1-8-16 | 3,000 | – | 13,000 | 4 | 52,000 |
| 30-11-16 | – | 5,000 | 8,000 | 4 | 32,000 |
| 31-3-17 | 5,000 | – | 13,000 | 0 | – |
| 1,24,000 | |||||
Capital ratio : 298:124 or 149:62
Working Note: –
1. Interest on capital:
| X | = | 42,200 | X | 149 |
| 211 | ||||
| = | 29,800/- | |||
| Y | = | 42,200 | X | 62 |
| 211 | ||||
| = | 12,400/- | |||
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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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