P ion Q are partners sharing profits and losses in the ratio 60:40 On 1 April,2014, their capitals were: - Accountancy -

Question

P ion Q are partners sharing profits and losses in the ratio 60:40
On 1 April,2014, their capitals were: P- ₹5,00,000 and Q-
₹3,00,000 During the year ended 31 March,2015, they earned a
net profit of ₹7,60,000 The terms of partnership are:
i) Interest on capital @8% p a
ii) P will get a commission @3% on turnover
iii) Q will get a salary of ₹5,000 p m
iv) Q will get a commission of 5% on profits after deduction of
interest, salary and commission (including his own commission)
v) P is entitled to a rent of ₹20,000 per month for the use
of his premises by the firm It is paid to him by cheque at the end
of every month
Partners' drawings for the year were: P- ₹40,000 and Q-
₹30,000 Turnover for the year was ₹20,00,000 Prepare
partners' capital accounts

Manisha Arora · Accepted Answer

Dear Student, the solution to your query is here

Partners’
Capital Account

Dr

Cr

Particulars
P
Q
Particulars
P
Q

Drawings
40,000
30,000
Balance b/d
5,00,000
3,00,000

Interest on Capital
40,000
24,000

Commission
60,000
16,000

Salary

60,000

Profit and Loss Appropriation A/c
1,92,000
1,28,000

Balance c/d
9,98,000
4,98,000
Rent Paid
2,40,000

10,32,000
5,28,000

Partners’ Capital Account
Dr.						Cr.
Particulars	P	Q	Particulars	P	Q
Drawings	40,000	30,000	Balance b/d	5,00,000	3,00,000
			Interest on Capital	40,000	24,000
			Commission	60,000	16,000
			Salary		60,000
			Profit and Loss Appropriation A/c	1,92,000	1,28,000
Balance c/d	9,98,000	4,98,000	Rent Paid	2,40,000
	10,32,000	5,28,000		10,32,000	5,28,000