Y and Z are partners with capitals of Rs 25,000 and Rs 15,000 respectively on 1st April, 2016 Each - Accountancy - Accounting for Partnership Basic Concepts

Question

Y and Z are partners with capitals of Rs 25,000 and Rs 15,000
respectively on 1st April, 2016 Each partner is entitled to 90% p a
interest on his capital, Z is entitled to a salary of Rs 6,000 p a
together with a commission of 6% of Net Profit remaining after
deducting interest on capitals and salary and after charging his
commission The profits for the year ended 31st March, 2017 before
making any of the above mentioned adjustments amount to Rs 30,800
Prepare Partner's Capital Accounts: (i) when capitals are fixed,
and (ii) when capitals are fluctuating

Neha Chopra · Accepted Answer

Dear Student,

i) When Capitals are fixed:

Partner's Capital A/c

Particulars
Y's Capital
A/c
Z's Capital
A/c
Particulars
Y's Capital
A/c
Z's Capital
A/c

Balance
c/d
25,000
15,000
Balance
b/d
25,000
15,000

Partner's Current
A/c

Particulars
Y's Current
A/c
Z's Current
A/c

Particulars

Y's Current A/c
Z's Current
A/c

Balance
c/d
12,250
18,550

Interest on Capital @ 9%

2,250
1,350

Salary

--
6,000

Commission **

--
1,200

Profit & Loss Appropriation A/c

10,000
10,000

12,250
18,550

Commission =
30,800-2,250-1,350-6,000×6106 = 1,200
profit to be share equally

ii) When Partner's Capital are fluctuating :

Particulars
Y's Capital
A/c
Z's Capital
A/c

Balance
c/d
37,250
33,550

Balance c/d
25,000
15,000

Interest on Capital @ 9%
2,250
1,350

Salary
--
6,000

Commission
--
1,200

Profit & Loss Appropriation A/c
10,000
10,000

37,250
33,550

Regards,

Particulars	Y's Capital A/c	Z's Capital A/c	Particulars	Y's Capital A/c	Z's Capital A/c
Balance c/d	25,000	15,000	Balance b/d	25,000	15,000

Particulars	Y's Current A/c	Z's Current A/c	Particulars	Y's Current A/c	Z's Current A/c
Balance c/d	12,250	18,550	Interest on Capital @ 9%	2,250	1,350
			Salary	--	6,000
			Commission **	--	1,200
			Profit & Loss Appropriation A/c	10,000	10,000
	12,250	18,550		12,250	18,550