Q Ali and bahadur are partners in a firm sharing profit and losses as Ali 70% and Bahadur - Accountancy - Accounting for Partnership Basic Concepts

Question

Q Ali and bahadur are partners in a firm sharing profit and losses
as Ali 70% and Bahadur 30% Their respective capital as at 1st
April, 2016 stand as Ali Rs 25,000 and Bahadur Rs 20,000 The
partners are allowed interest on capitals @ 5% p a Drawings of the
partners during the year ended 31st March 2017 amounted to Rs 3,500
and 2,500 respectively
Profit for the year , before charging interest on capital and
annual salary of Bahadur @ Rs 3,000 amounted to Rs 40,000, 10% of
divisible profit it to be transferred to Reserve

You are asked to show Partner's Current Account and Capital
Accounts recording the above transactions

Neha Chopra · Accepted Answer

Dear
Student,

Partner's Capital
A/c

Date
Particulars
Ali's Capital
A/c
Bahadur's Capital
A/c
Date
Particulars
Ali's Capital
A/c
Bahadur's Capital
A/c

31st Mar
2017
Balance
c/d
25,000
20,000
1st Apr
2016
Balance
b/d
25,000
20,000

25,000
20,000

Partner's Current
A/c

Date
Particulars
Ali's Current
A/c

Bahadur's Current A/c
Date

Particulars
Ali's
Current A/c
Bahadur's
Current A/c

31st Mar
2017
Drawings
3,500
2,500
31st Mar
2017

Interest on Capital @ 5%
1,250
1,000

Balance
c/d
19,642
10,883

Salary A/c

3,000

Profit & Loss Appropriation A/c (7:3)
21,892
9,383

23,142
13,383

Total Available profit is
Rs 40,000
Divisible profit =
40,000-(1,250+1,000)-3,000 = 34,750
Amount transferred to Reserves = 34,750×10100= 3,475
Profit available for distribution to partner's Current A/c =
34,750-3,475 = 31,275

Regards,

Partner's Capital A/c
Date	Particulars	Ali's Capital A/c	Bahadur's Capital A/c	Date	Particulars	Ali's Capital A/c	Bahadur's Capital A/c
31st Mar 2017	Balance c/d	25,000	20,000	1st Apr 2016	Balance b/d	25,000	20,000

		25,000	20,000			25,000	20,000

Partner's Current A/c
Date	Particulars	Ali's Current A/c	Bahadur's Current A/c	Date	Particulars	Ali's Current A/c	Bahadur's Current A/c
31st Mar 2017	Drawings	3,500	2,500	31st Mar 2017	Interest on Capital @ 5%	1,250	1,000
	Balance c/d	19,642	10,883		Salary A/c		3,000
					Profit & Loss Appropriation A/c (7:3)	21,892	9,383
		23,142	13,383			23,142	13,383