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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.

Please find the corrected solution below.

(a)

Partners’ Capital Accounts |
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Dr. |
Cr. |
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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 |
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Dr. |
Cr. |
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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 |
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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

$15,00,000\times \frac{5}{100}=\mathrm{Rs}75,000\phantom{\rule{0ex}{0ex}}3,00,000\times \frac{5}{100}\times \frac{9}{12}=\mathrm{Rs}11,250\phantom{\rule{0ex}{0ex}}\mathrm{Total}\mathrm{Interest}=\mathrm{Rs}86,250(75,000+11,250)$

Calculation of Interest on B's Capital

$10,00,000\times \frac{5}{100}=\mathrm{Rs}50,000\phantom{\rule{0ex}{0ex}}2,00,000\times \frac{5}{100}\times \frac{9}{12}=\mathrm{Rs}7,500\phantom{\rule{0ex}{0ex}}TotalInterest=Rs57,500(50,000+7,500)$

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