Interest is to be charged @ 6% per annum on drawings. Calculate interest on drawings, assuming that books of accounts are closed on 31st March, 2015, every year.
During the year A's drawings were Rs. 32,000 and B's drawings were Rs. 20,000.
After the distribution of profit of Rs.90,000, it was discovered that interest on capital was provided 10% p.a. when there was no such provisions in the partnership deed. And also the profits were distributed in 3:2 ratio. Showing your workings clearly pass an adjustment journal entry.Please solve this question.
Q67. (HOTS ) Ajoo and Bajoo were in partnership sharing profit and losses in the proportion of 4/5 and 1/5 respectively. In appreciation of the services of their employee Sajoo who was in receipt of salary of Rs.2,400 p.a. and a commission of 5% on the net profits after charging such salary and commission, they took him into partnership as from 1-4-2016 giving him 1/8th share of the profit.
The agreement provided that any excess over his former remuneration to which Sajoo becomes entitled will be paid out of Ajoo's share of profit.
The profit for the year ended 31st March, 2017 amounted to Rs. 57,000. Divide this between the partners.
[ Ans. Profit Ajoo Rs. 39,475; Bajoo Rs. 10,400 ; Sajoo Rs. 7,125.]
Q68. [HOTS) P, Q and R are in partnership. P and Q sharing profit in the ratio of 4 :3 and R receiving a salary of Rs. 20,000 p.a. plus a commission of 10% of the profit after charging his salary and commission of th of the profit of the firm whichever is more. Any excess of the latter over the former received by R is, under the partnership deed, to be borne by P and Q in the ratio of 3 : 2. The profit for the year ending 31st March, 2017 came to 3,85,000 after charging R's salary.
Divide the profits among partners.
[ Ans. Profit P Rs. 1,92,500 ; Q Rs. 1,45,000 and R Rs. 67,500.]
1. Meghna, Sejal and Deepali are partners without any partnership deed. On 1st April, 2016 their capital account balance is Rs.5,00,000 each respectively. Meghna advanced a loan of Rs.1,00,000 to the firm on the above date but in next 4 months they could not finalised the rate of interest on such loan. On 1st August, 2016 they decided to form a partnership deed, according to which interest on Meghna’s loan will be given @ 7.5 % per annum. What amount of interest will be paid to Meghna on her loan on 31st March, 2017?
(i) Interest on Capital @ 5% p.a.
(ii) Salary to Praveen Rs 1,500 p.m. and to Riya Rs 1,000 p.m.
(iii) Transfer of profit to General Reserve Rs 10,000. Net Profit for the year ended 31st March, 2015 was Rs 1,00,000.
Pass necessary rectifying entry for the above adjustments in the books of the firm. Also show your working clearly.
Q18. Rakesh and Roshan are partners sharing profit in the ratio of 3 : 2 with capitals of Rs.40,000 and Rs. 30,000, respectively. They withdrew from the firm the following amounts for their personal use.
30st June, 2014
31st August, 2014
1st November, 2014
31st December, 2014
31stJanuary, 2015
1st March, 2014
500
1,000
400
1,500
300
700
Q13. A and B are equal partners. An extract of their balance sheet as at 31st March, 2016 :
A 1,00,000
B 80,000
Creditors
1,80,000
80,000
Drawings ; A
10,000
During the year A's drawings were Rs. 32,000 and B's drawings were Rs. 20,000.
After the distribution of profit of Rs.90,000, it was discovered that interest on capital was provided 10% p.a. when there was no such provisions in the partnership deed. And also the profits were distributed in 3:2 ratio. Showing your workings clearly pass an adjustment journal entry.Please solve this question.