DK Goel Solutions Q 4 Chapter 1 Accounting for Partnership Firms-Fundamentals Class 12 CBSE [2023-24]

(A) On 1st April, 2021 A and B commenced business with Capitals of ₹ 6,00,000 and ₹ 2,00,000 respectively. On 31st March, 2022 the net profit (before taking into account the provisions of deed) was ₹ 2,40,000. Interest on capitals is to be allowed at 6% p.a. B was entitled to a salary of ₹ 60,000 p.a. The drawings of the partners A and B were ₹ 60,000 and ₹ 40,000 respectively. The interest on Drawings for A being ₹ 2,000 and B ₹ 1,000. Assuming that A and B are equal partners, prepare the Profit & Loss Appropriation A/c and Partner’s Capital Accounts as at 31st March, 2022.

(B) Anubha and Kajal entered into partnership sharing profits and losses in the ratio of 2 : 1. Their capitals were ₹ 90,000 and ₹ 60,000. The profit during the year were ₹ 45,000. According to partnership deed, both partners are allowed salary, ₹ 700 per month to Anubha and ₹ 500 per month to Kajal. Interest is allowed on capital @ 5% p.a. The drawings during the period were ₹ 8,500 for Anubha and ₹ 6,500 for Kajal. Interest is to be charged @ 5% p.a. on drawings. Prepare partners capital accounts, assuming that the capital accounts are fluctuating.