A, B and C were partners in a printer manufacturing firm. They were sharing profits and losses in the ratio of 2: 2: 1. On 31" March, 2022 their…

Dr. B’s Capital Account Cr. Particulars Amount (₹) Particulars Amount (₹) To B’s Legal $\displaystyle 3,42,500$ By Balance b/d $\displaystyle 2,00,000$ Representatives A/c By General Reserve A/c $\displaystyle 1,00,000$ By Interest on Capital A/c $\displaystyle 6,000$ By A’s Capital A/ $\displaystyle 16,000$ By C’s Capital A/c $\displaystyle 8,000$ By P&L Suspense A/c $\displaystyle 12,500$ $\displaystyle 3,42,500$ $\displaystyle 3,42,500$ Working Notes • Interest on B’s Capital = $\displaystyle 2,00,000$ x $\displaystyle 12$/$\displaystyle 100$ x $\displaystyle 3$/$\displaystyle 12$ = ₹$\displaystyle 6,000$ • B’s Share of Profit =$\displaystyle 2,50,000$ x $\displaystyle 1,25,000$ x $\displaystyle 2$ = ₹$\displaystyle 12,500$ $\displaystyle 10,00,000$ $\displaystyle 5$