CBSE 2023 · Region 4 · Set 2 · Q20

Raj, Mehak and Divya were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 2$ : 1. Their respective capitals were : ₹ $\displaystyle 6,00,000$, ₹ $\displaystyle 4,00,000$ and ₹ $\displaystyle 2,00$,000. The partnership deed provided for the following : (a) Interest on capital @ $\displaystyle 8$% per annum. (b) Interest on drawings @ $\displaystyle 6$% per annum. (c) Interest on partner s loan to the firm @ $\displaystyle 5$% per annum. During the year, Raj had withdrawn ₹ $\displaystyle 12,000$ on 1st October, $\displaystyle 2021$, while Mehak withdrew ₹ $\displaystyle 60,000$ on 1st December, 2021. On 1st January, $\displaystyle 2021$, Divya had given a loan of ₹ $\displaystyle 1,20,000$ to the firm. Pass the 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 Raj's capital. (ii) Charging interest on Mehak's drawings . (iii) Providing interest on loan given to the firm by Divya. Also pass transfer entries in the Profit and Loss Account/Profit and Loss Appropriation Account, as the case may be.