[ISC] Q. 49 Solution of Fundamentals of Partnership TS Grewal ISC 2023-24 Edition

Anil and Sunil are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2022 their fixed capitals were ₹ 18,00,000 and ₹ 15,00,000 respectively. On 1st October, 2022, they decided that their total capitals (fixed) should be ₹ 36,00,000 in their profit-sharing ratio. Accordingly, they introduced further capital or withdrew excess capital. The partnership deed provided the following:

1. (i) Interest on Capital @ 12% p.a.
2. (ii) Interest on drawing @ 18% p.a.
3. (iii) A monthly salary of ₹ 12,000 to Anil and a quarterly salary of ₹ 27,000 to Sunil. The drawings of Anil and Sunil during the year were as follows:

1. On 30th September, 2022 — Anil ₹ 1,20,000; Sunil ₹ 90,000
2. On 31st December, 2022 — Anil ₹ 1,20,000; Sunil ₹ 1,50,000

During the year ended 31st March, 2023, the firm earned net profit of ₹ 9,00,000. 10% of the net profit was to be transferred to General Reserve. You are required to prepare:

1. (i) Profit & Loss Appropriation Account.
2. (ii) Partners’ Capital Accounts, and
3. (iii) Partners’ Current Accounts.