1.

A, B and C are in partnership. On 1st April, 2015 their capitals were : A Rs 5,00,000 (Credit), B Rs 3,00,000 (Credit) and C Rs 40,000 (Debit). As per partnership deed Interest on Capital is to be allowed at 6% p.a. and Interest on drawings is to be charged at 8% p.a. You find that : (i) On 1st July 2015, A withdrew Rs 1,00,000 against capital; (ii) B withdrew Rs 5,000 p.m. during the year. (iii) C withdrew Rs 60,000 during the year. The profit for the year ended 31st March, 2016 amounted to Rs 3,84,000. You are required to prepare journal entries for the above transactions and also prepare partner's capital accounts.

Answer»

A, B and C are in partnership. On 1st April, 2015 their capitals were : A Rs 5,00,000 (Credit), B Rs 3,00,000 (Credit) and C Rs 40,000 (Debit). As per partnership deed Interest on Capital is to be allowed at 6% p.a. and Interest on drawings is to be charged at 8% p.a.

You find that :

(i) On 1st July 2015, A withdrew Rs 1,00,000 against capital;

(ii) B withdrew Rs 5,000 p.m. during the year.

(iii) C withdrew Rs 60,000 during the year.

The profit for the year ended 31st March, 2016 amounted to Rs 3,84,000.

You are required to prepare journal entries for the above transactions and also prepare partner's capital accounts.



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