Q. Arun and Balun are partners in a firm sharing profits and losses equally. Their capitals on 1st April. 2015. were 480000 and 5,40,000.On 1st October, 2015, they decided that the total capital of the firm should be Rs. 10,00,000, to be contributed equally by both Of them. According to the partnership deed, interest on capital is allowed to partners @ 6% p.a.
You are required to compute interest on capital for the year ending 31st March 2016.
Q. Mohit and Keshav are two partners sharing profits and losses equally. The Balance Sheet of their firm as on 31st March. 2016. was as follows:
| Liabilities | Amount | Assets | Amount |
| Creditors | 12330 | Cash in hand | 13000 |
| General Reserve | 2000 | Book debts | 10200 |
| Mohit's Capital | 19030 | Closing Stock | 6730 |
| keshav's Capital | 18870 | Building | 19300 |
| Goodwill | 3000 | ||
| 52230 | 52230 |
(i) The Goodwill of the firm was valued at Rs. 9,000.
(ii) 20% of the General Reserve was kept aside as provision for doubtful debts.
(iii) There was a piece Of furniture valued at Which was unrecorded in the
books of firm.
Mohit decided to pay off Keshav by giving him this piece of furniture and the balance in annual instalments of Rs. 8,000 along With interest @5% per annum.
You are required prepare:
(a) Keshav's Capital Account.
(b) Keshav's Loan Account till it is finally closed.
Dear Student,
The solution to the first question is as follows. Please post the next question in a separate thread.
The solution to the first question is as follows. Please post the next question in a separate thread.