# Sameer and Yasmin are partners with capitals of Rs.15,00,000 and Rs. 10,00,000 respectively. They agree to share profits in the ratio of 3:2. Show how the following transactions will be recorded in the capital accounts of the partners in case: (i) the capitals are fixed, and (ii) the capitals are fluctuating. The books are closed on March 31, every year.I know that this is a illustration in the textbook, but the solution printed is wrong. So, i want the full correct answer. Pls.

Dear Student,

Please find the corrected solution below.

(a)

 Partners’ Capital Accounts Dr. Cr. Particulars Sameer Yasmin Particulars Sameer Yasmin Balance c/d 18,00,000 12,00,000 Balance b/d 15,00,000 10,00,000 Cash/Bank 3,00,000 2,00,000 18,00,000 12,00,000 18,00,000 12,00,000

 Partners’ Current Accounts Dr. Cr. Particulars Sameer Yasmin Particulars Sameer Yasmin Drawings A/c 30,000 20,000 Interest on Capital A/c 86,250 57,500 Interest on Drawings 1,800 1,200 Salary A/c 20,000 P/L Appropriation A/c 60,000 40,000 Commission A/c 10,000 7,000 Balance c/d 24,450 3,300 1,16,250 64,500 1,16,250 64,500

(b)

 Partners’ Capital Accounts Dr. Cr. Particulars Sameer Yasmin Particulars Sameer Yasmin Drawings A/c 30,000 20,000 Balance b/d 15,00,000 10,00,000 Interest on Drawings 1,800 1,200 Cash/Bank 3,00,000 2,00,000 P/L Appropriation A/c 60,000 40,000 Interest on Capital A/c 86,250 57,500 Balance c/d 18,24,450 12,03,300 Salary A/c 20,000 Commission A/c 10,000 7,000 19,16,250 12,64,500 19,16,250 12,64,500

Note: The interest on capital is wrongly calculated for 6 months in the book, whereas, it should be calculated for 9 months (from July-Mar).

Calculation of Interest on A's capital

Calculation of Interest on B's Capital

• 23
What are you looking for?