Anubha and Kajal are Partners of a Firm Sharing Profits and Losses in the Ratio of 2:1-Accountancy

Anubha and Kajal are partners of a firm sharing profits and losses in the ratio of 2:1. Their capital, were Rs 90,000 and Rs 60,000. The profit during the year were Rs 45,000. According to partnership deed, both partners are allowed salary, Rs 700 per month to Anubha and Rs 500 per month to Kajal. Interest allowed on capital @ 5% p.a. The drawings at the end of the period were Rs 8,500 for Anubha and Rs 6,500 for Kajal. Interest is to be charged @ 5% p.a. on drawings. Prepare partners capital accounts, assuming that the capital account are fluctuating.

Profit and loss Appropriation account

Particulars		Amount (Rs.)	Particulars	Amount (Rs.)
Profit transfer to partners capital account			Profit and loss	45,000
Anubha	30,000
Kajal	15,000	45,000
		45,000		45,000

Partners capital Account

Particulars	Anubha	Kajal	Particulars	Anubha	Kajal
To Drawings	8,500	6,500	By balance b/d	90,000	60,000
To Interest on Drawings	425	325	By Partner’s salary	8,400	6,000
To balance c/d	1,23,975	77,175	By Interest on capital	4,500	3,000
			By profit and loss Appropriation Account	30,000	15,000
	1,32,900	84,000		1,32,900	84,000

 

Chapter-2 Partnership Basic: Accounts

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