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Accountancy · 2023 · 3 marks
Accounting for Partnership: Basic ConceptsSpecial Aspects of Partnership Accounts3 marksshort answer
CBSE 2023 · Region 4 · Set 1 · Q20
A, B and C were partners in a firm sharing profits and losses equally. Their respective capitals were ₹ $\displaystyle 10,00,000$, ₹ $\displaystyle 9,00,000$ and ₹ $\displaystyle 8,00$,000. The partnership deed provided for the following : ($\displaystyle 1$) Interest on capital @ $\displaystyle 9$% per annum. ($\displaystyle 2$) Interest on drawings @ $\displaystyle 12$% per annum. ($\displaystyle 3$) Interest on partners loan to the firm @ $\displaystyle 10$% per annum. During the year, B had withdrawn ₹ $\displaystyle 20,000$ for his personal use. On $\displaystyle 30.9.2021$, A had given a loan of ₹ $\displaystyle 70,000$ to the firm. Pass the necessary journal entries in the books of the firm for the following for the year ended 31st March, $\displaystyle 2022$ : (i) Allowing interest on C's Capital . (ii) Providing interest on A's Loan. (iii) Charging interest on B's Drawings . Also give transfer entries in the Profit and Loss Account/Profit and Loss Appropriation Account, as the case may be.
Marking-scheme solution
Books of A, B and C
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
(i)(a)
Interest on capital A/c Dr. $\displaystyle 72,000$
To C’s Capital A/c $\displaystyle 72,000$
(Interest on capital provided to C @ $\displaystyle 9$%
p.a.)
(i)(b)
Profit & Loss Appropriation A/c Dr. $\displaystyle 72,000$
To Interest on capital A/c $\displaystyle 72,000$
(Interest on capital transferred to Profit
& Loss Appropriation Account)
(a)
Interest on A’s Loan A/c Dr. $\displaystyle 3,500$
To A’s Loan A/c $\displaystyle 3,500$
(Interest on Loan provided to A @ $\displaystyle 10$%
p.a.)
(ii)(b)
Profit & Loss A/c Dr. $\displaystyle 3,500$
To Interest on A’s Loan A/c $\displaystyle 3,500$
(Interest on Loan transferred to Profit &
Loss Account)
(a)
B’s Drawings A/c / B’s Capital Dr. $\displaystyle 1,200$
To Interest on B’s Drawings A/c $\displaystyle 1,200$
(Interest on drawings charged from B @
$\displaystyle 12$% p.a.)
(b)
Interest on B’s Drawings A/c Dr. $\displaystyle 1,200$
To Profit & Loss Appropriation A/c $\displaystyle 1,200$
(Interest on Drawings transferred to
Profit & Loss Appropriation Account)
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CBSE Class 12 Accountancy past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.