The Capital Accounts of Moli and Golu Showed Balances of Rs 40,000 and Rs 20,000 As On April 01, 2016 :-Accountancy

The capital accounts of Moli and Golu showed balances of Rs 40,000 and Rs 20,000 as on April 01, 2016. They shared profits in the ratio of 3:2. They allowed interest on capital @ 10% p.a. and interest on drawings, @ 12 p.a. Golu advanced a loan of Rs 10,000 to the firm on August 01, 2016. During the year, Moli withdrew Rs 1,000 per month at the beginning of every month whereas Golu withdrew Rs 1,000 per month at the end of every month. Profit for the year, before the above mentioned adjustments was Rs 20,950. Calculate interest on drawings show distribution of profits and prepare partner’s capital accounts.

Calculation for Interest on Moli's Drawing,

Total Drawings `\times` `"Rate"/100` `\times` `\frac{13}{2\times12}`

= 12,000 `\times` `"2"/100` `\times` `\frac{13}{2\times12}`

= Rs. 780

Calculation for Interest on Golu's Drawing,

Total Drawings `\times` `"Rate"/100` `\times` `\frac{11}{2\times12}`

=  12,000 `\times` `"12"/100` `\times` `\frac{11}{2\times12}`

= Rs. 660

Profit and Loss Appropriation A/c

Particulars		Amount (Rs.)	Particulars		Amount (Rs.)
To Interest on partners loan A/c			By Profit and loss A/c		20,950
Golu		400	By Interest on Drawings
To Interest on Partners Capital A/c			Moli	780
Moli	4,000		Golu	660	1,440
Golu	2,000	6,000
To Profit transferred to partners capital A/c
Moli	9,594
Golu	6,396	15,990
		22,390			22,390

Partners capital A/c

Particulars	Moli	Golu	Particulars	Moli	Golu
To Drawings	12,000	12,000	By balance b/d	40,000	20,000
To Interest on Drawings	780	660	By Interest on Capital	4,000	2,000
To balance c/d	40,814	15,736	By Profit ans loss appropriation A/c	9,594	6,396
	53,594	28,396		53,594	28,396

Chapter-2 Partnership Basic: Accounts

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