Q. . From the following Balance Sheet of Long and Short, calculate interest on capital @8% p.a. for the year
ended 31st March, 2015:
BALANCE SHEET at March, 2015
| Liabilities | Rs. | Assets | Rs. |
| Long's Capital A/c Short's Capital A/c Profit and Loss Appropriation A/c (2014-15) |
1,60,000 1,40,000 1,00,000 |
Fixed Assets Drawings-Long Other Assets |
3,00,000 40,000 60,000 |
| 4,00,000 | 4,00,000 |
Dear Student
The solution to this question has been given in the "Textbook Solutions". Kindly refer to the following link for the same: https://www.meritnation.com/cbse/class12-commerce/textbook-solutions/accountancy/double-entry-book-keeping--ts-grewal-vol.-i-(2016)/accounting-for-partnership-firms--fundamentals/page1.71-exercise-qno33/2059_9835_122837
As for Long's Drawings, always remember that Drawings or Profit & Loss appearing in the Balance Sheet have not yet been transferred to the Capital Accounts of the partners and thus they do not have to be reversed.
Hope this information clarifies your doubts. Keep posting:-)
Regards
The solution to this question has been given in the "Textbook Solutions". Kindly refer to the following link for the same: https://www.meritnation.com/cbse/class12-commerce/textbook-solutions/accountancy/double-entry-book-keeping--ts-grewal-vol.-i-(2016)/accounting-for-partnership-firms--fundamentals/page1.71-exercise-qno33/2059_9835_122837
As for Long's Drawings, always remember that Drawings or Profit & Loss appearing in the Balance Sheet have not yet been transferred to the Capital Accounts of the partners and thus they do not have to be reversed.
Hope this information clarifies your doubts. Keep posting:-)
Regards