Q. 26. Current Account's Balances as on 1st April, 2013 were as :- Amit : Rs. 5,000 (Cr), Namit : Rs. 2,000 (Cr.) and Ruchi : Rs. 1,000 (Dr.). Profit sharing ratio was 3:2:1 Amit gets a monthly Salary of Rs 1,500.
Amit Draws Rs. 2,000 on the first day of each month and Namit draws Rs. 2,000 on the last date of each month while Ruchi draws Rs 6,000 at the end of each quarter. Interest on drawings is to be charged @ 12% p.a. Profits for the year ended 31st March, 2014 before adjustments of interest on drawings and of salary were Rs. 74,040. Show Current Accounts.
|Partner's Current A/c|
|Bal B/d||-||-||1,000||Balance b/d||5,000||2,000||0|
|Interest on Drawings||1,560||1,320||1,080||Salary||18,000||0||0|
|Profit and loss Appropriation||30,000||20,000||10,000|
|Bal C/d||27,440||0||0||Bal C/d||3,320||16,080|
|Calculation of Interest on Drawings|
|Average Time Period||6.5||5.5||4.5|
|Interest on Drawings||1,560||1,320||1,080|
|(24000 x 0.12 x 6.5/12)||(24000 x 0.12 x 5.5/12)||(24000 x 0.12 x 4.5/12)|