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Accountancy · 2023 · 3 marks
Accounting for Partnership: Basic ConceptsSpecial Aspects of Partnership Accounts3 marksshort answer
CBSE 2023 · Region 4 · Set 3 · Q20
Aditi, Bobby and Krish were partners in a firm sharing profits and losses in the ratio of 5: 3: 2. Their capitals were ₹ 5,00,000, ₹ 4,00,000 and ₹…
Aditi, Bobby and Krish were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : $\displaystyle 3$ : 2. Their capitals were ₹ $\displaystyle 5{,}00{,}000$, ₹ $\displaystyle 4{,}00{,}000$ and ₹ $\displaystyle 2{,}00{,}000$ respectively. The partnership deed provided for the following : (a) Interest on capital @ $\displaystyle 10$% per annum. (b) Interest on drawings @ $\displaystyle 6$% per annum. (c) Interest on partner's loan to the firm @ $\displaystyle 9$% per annum. During the year, Aditi had withdrawn ₹ $\displaystyle 60{,}000$ and Bobby ₹ $\displaystyle 50$,000. On 1st September, $\displaystyle 2021$, Krish had given a loan of ₹ $\displaystyle 40{,}000$ to the firm. Pass necessary journal entries in the books of the firm for the following transactions for the year ended 31st March, $\displaystyle 2022$ : (i) Allowing interest on Bobby's capital. (ii) Charging interest on Aditi's drawings. (iii) Providing interest on Kris f's loan to the firm. Also pass transfer entries in the Profit and Loss Account/Profit and Loss Appropriation Account, as the case may be.
Marking-scheme solution
Books of Aditi, Bobby and Krish
Journal
Date Particulars L.F Dr.Amount Cr.Amount
₹ ₹
(i)(a)
Interest on capital A/c Dr. $\displaystyle 40{,}000$
To Bobby’s Capital A/c $\displaystyle 40{,}000$
(Interest on capital provided @ $\displaystyle 10$% p.a.)
(i)(b)
Profit & Loss Appropriation A/c Dr. $\displaystyle 40{,}000$
To Interest on capital A/c $\displaystyle 40{,}000$
(Interest on capital transferred to Profit &
Loss Appropriation Account)
(ii)(a)
Aditi’s Drawings A/c/ Aditi’s Capital A/cDr. $\displaystyle 1{,}800$
To Interest on Aditi’s Drawings A/c $\displaystyle 1{,}800$
(Interest on drawings charged @ $\displaystyle 6$% p.a.)
(ii)(b)
Interest on Aditi’s Drawings A/c Dr. $\displaystyle 1{,}800$
To Profit & Loss Appropriation A/c $\displaystyle 1{,}800$
(Interest on Drawings transferred to Profit &
Loss Appropriation Account)
(iii)(a)
Interest on Krish’s Loan A/c Dr. $\displaystyle 2{,}100$
To Krish’s Loan A/c $\displaystyle 2{,}100$
(Interest on Loan provided @ $\displaystyle 9$% p.a.)
(iii)(b)
Profit & Loss A/c Dr. $\displaystyle 2{,}100$
To Interest on Krish’s Loan A/c $\displaystyle 2{,}100$
(Interest on Loan transferred to Profit &
Loss Account)
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