Sameer and Yasmin are partners with capitals of Rs 15,00,000 and Rs 10,00,000 respectively They agree to share - Accountancy - Accounting for Partnership Basic Concepts

Question

Sameer and Yasmin are partners with capitals of Rs 15,00,000 and Rs
10,00,000 respectively They agree to share profits in the ratio of
3:2 Show how the following transactions will be recorded in the
capital accounts of the partners in case: (i) the capitals are
fixed, and (ii) the capitals are fluctuating The books are closed
on March 31, every year

I know that this is a illustration in the textbook, but the
solution printed is wrong So, i want the full correct answer Pls

Neha A. · Accepted Answer

Dear Student,

Please find the corrected solution below

(a)

Partners’
Capital Accounts

Dr
Cr

Particulars
Sameer
Yasmin
Particulars
Sameer
Yasmin

Balance c/d
18,00,000
12,00,000
Balance b/d
15,00,000
10,00,000

Cash/Bank
3,00,000
2,00,000

18,00,000
12,00,000

Partners’
Current Accounts

Dr
Cr

Particulars
Sameer
Yasmin
Particulars
Sameer
Yasmin

Drawings A/c
30,000
20,000
Interest on Capital A/c
86,250
57,500

Interest on Drawings
1,800
1,200
Salary A/c
20,000

P/L Appropriation A/c
60,000
40,000
Commission A/c
10,000
7,000

Balance c/d
24,450
3,300

1,16,250
64,500

(b)

Partners’
Capital Accounts

Dr
Cr

Particulars
Sameer
Yasmin
Particulars
Sameer
Yasmin

Drawings A/c
30,000
20,000
Balance b/d
15,00,000
10,00,000

Interest on Drawings
1,800
1,200
Cash/Bank
3,00,000
2,00,000

P/L Appropriation A/c
60,000
40,000
Interest on Capital A/c
86,250
57,500

Balance c/d
18,24,450
12,03,300
Salary A/c
20,000

Commission A/c
10,000
7,000

19,16,250
12,64,500

Note: The interest on capital is wrongly calculated for 6 months in
the book, whereas, it should be calculated for 9 months (from
July-Mar)

Calculation of Interest on A's capital

15,00,000 ×5100=Rs 75,0003,00,000 ×5100×912=Rs 11,250Total Interest = Rs 86,250 (75,000 + 11,250)

Calculation of Interest on B's Capital

10,00,000 ×5100=Rs 50,0002,00,000 ×5100×912=Rs 7,500Total Interest= Rs 57,500 (50,000 + 7,500)

Partners’ Capital Accounts
Dr.			Cr.
Particulars	Sameer	Yasmin	Particulars	Sameer	Yasmin
Balance c/d	18,00,000	12,00,000	Balance b/d	15,00,000	10,00,000
			Cash/Bank	3,00,000	2,00,000



	18,00,000	12,00,000		18,00,000	12,00,000

Partners’ Current Accounts
Dr.			Cr.
Particulars	Sameer	Yasmin	Particulars	Sameer	Yasmin
Drawings A/c	30,000	20,000	Interest on Capital A/c	86,250	57,500
Interest on Drawings	1,800	1,200	Salary A/c	20,000
P/L Appropriation A/c	60,000	40,000	Commission A/c	10,000	7,000
Balance c/d	24,450	3,300

	1,16,250	64,500		1,16,250	64,500