✓ Board-verified
Accountancy · 2025 · 3 marks
CBSE 2025 · Region 5 · Set 2 · Q17
Daya and Deena were partners in a firm sharing profits and losses in the ratio of 3: 1. On 1st April, 2023, their capital accounts showed balances of…
Daya and Deena were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : 1. On 1st April, $\displaystyle 2023$, their capital accounts showed balances of $\displaystyle 5,00,000$ and ₹ $\displaystyle 6,00,000$ respectively. The partnership deed provided for interest on capital @ $\displaystyle 12$% p.a. Show the treatment of interest on capital in the following cases if : (i) During the year ended 31st March, $\displaystyle 2024$, the firm earned a profit of ₹ $\displaystyle 2,00$,000. (ii) During the year ended 31st March, $\displaystyle 2024$, the firm earned a profit of ₹ $\displaystyle 66$,000.
Marking-scheme solution
(i)
Dr. Profit & Loss Appropriation A/c Cr.
for the year ended 31st March, $\displaystyle 2024$
Particulars Amount Particulars Amount
₹ ₹
Interest on Capital: P & L A/c (Net Profit) $\displaystyle 2,00,000$
Daya $\displaystyle 60,000$
Deena $\displaystyle 72,000$ $\displaystyle 1,32,000$
Profit transferred to capital accounts:
Daya $\displaystyle 51,000$
Deena $\displaystyle 17,000$ $\displaystyle 68,000$
$\displaystyle 2,00,000$ $\displaystyle 2,00,000$
(ii)
Dr. Profit & Loss Appropriation A/c Cr.
for the year ended 31st March, $\displaystyle 2024$
Particulars Amount Particulars Amount
₹ ₹
Interest on Capital: P & L A/c (Net Profit) $\displaystyle 66,000$
Daya
Deena $\displaystyle 66,000$
$\displaystyle 66,000$ $\displaystyle 66,000$
Alternatively
(i)
As the profit for the year is ₹$\displaystyle 2,00,000$, which is sufficient to pay the amount of interest on
capital due to partners, therefore, Full interest will be paid.
Daya’s interest on capital= ₹$\displaystyle 60,000$
Deena’s interest on capital= ₹$\displaystyle 72,000$
(ii)
As the profit for the year is ₹$\displaystyle 66,000$, which is less than the amount of interest on capital due
to partners, i.e. ₹$\displaystyle 1,32,000$ (₹$\displaystyle 60,000$+₹$\displaystyle 72,000$), therefore, interest will be paid to the extent of
available profits i.e. ₹$\displaystyle 66,000$ in the ratio of interest on capital ($\displaystyle 5$:$\displaystyle 6$).
Daya’s interest on capital= ₹$\displaystyle 30,000$
Deena’s interest on capital= ₹$\displaystyle 36,000$
All Accounting for Partnership: Basic Concepts questions2025 question paperPractice Accounting for Partnership: Basic Concepts →
More from Accounting for Partnership: Basic Concepts
- Anita and Priyal were partners in a firm sharing profits and losses in the ratio of 3: 2. On 1st April, 2024, their capital accounts showed balances…2026
- Reema, Meesha and Shikha were partners in a partnership firm sharing profits and losses in the ratio of 8: 7: 5. On 1st October, 2023, Reema advanced…2025
- Anuj and Kartik were partners in a firm sharing profits and losses in the ratio of 5: 4. Anuj withdrew ₹ 20,000 in the beginning of every alternate…2025
- Monika, Bhoomika and Kamolika are partners sharing profits in the ratio of 6: 4: 1. Kamolika is guaranteed a minimum amount of ₹ 3,00,000 as her…2023
- Richa, Sheena and Tapti were partners in a firm sharing profits and losses in the ratio of 3: 2: 1. The partnership deed provided for charging…2024
- Radhika, Mehar and Shubha were partners in a firm sharing profits and losses in the ratio of 9: 8: 7. If Radhika's share of profit at the end of the…2025
- Sun and Moon were partners in a firm sharing profits and losses equally. Their fixed capitals were ₹ 5,00,000 each. After the accounts for the year…2025
- Nandita and Prabha were partners in a firm manufacturing furniture. They were sharing profits and losses in the ratio of 8:7. During the year ended…2026
CBSE Class 12 Accountancy past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.