Partnership

Accounting

Easy

Comprehension:

Read the information carefully and answer the questions

A partner withdrew money during the year ending March 31, 2020 from his capital account, for his personal use.

The amounts withdrawn were: Rs. 12,000 on June 01, 2019, Rs. 8,000; on August 31, 2019, Rs. 3,000; on September 30, 2019, Rs. 7,000; on November 30, 2019, and Rs. 6,000 on January 31, 2020.

Calculate interest on drawings, if the rate of interest is 9 percent per annum.

Calculate Interest on drawings for the amount of Rs. 3000 drawn on September 30, 2019

135

300

270

✅ Correct Option: 1

Interest on Drawings Calculation

Amount withdrawn: Rs. 3,000

Date of withdrawal: September 30, 2019

Year ending: March 31, 2020

Rate of interest: 9% per annum

Time Period Calculation

The time period for which interest is to be calculated:

From September 30, 2019 to March 31, 2020 = 6 months

(October, November, December, January, February, March)

Interest Calculation

Formula: Interest on Drawings = $\text{Amount} \times \text{Rate} \times \frac{\text{Time (in months)}}{12 \times 100}$

Interest = $3,000 \times 9 \times \frac{6}{12 \times 100}$

Interest = $3,000 \times 9 \times \frac{6}{1200}$

Interest = $\frac{162,000}{1200}$

Interest = Rs. 135

Note: Since the amount was withdrawn on September 30, 2019, interest is calculated for the remaining 6 months of the financial year till March 31, 2020. The time is converted to years by dividing the number of months by 12.

Correct Option: 1 (Rs. 135)

2023: 20 June Shift 2

Identify the way by which the clauses of partnership deed can be altered.

2026: 19 May Shift 1

Krishna, Sandeep and Karim are partners sharing profits in the ratio of 3:2:1. Their fixed capitals are: Krishna Rs. 1,20,000, Sandeep 90,000 and Karim 60,000. For the year 2024-25, interest was credited to them at @ 8% p.a. instead of 5% p.a. Find the amount transferred from Karim to Krishna's current account as an adjustment.

2026: 12 May Shift 1

Anuj and Alka are partners in a firm. Their capital accounts as on April 01, 2025 showed a balance of Rs. 4,00,000 and Rs. 6,00,000 respectively. On July 01, 2025, Anuj introduced additional capital of Rs. 50,000 and Alka, Rs. 60,000. On October 01, Anuj withdrew Rs. 30,000 and on January 01, 2026 Alka withdrew Rs. 15,000 from their capitals. Interest on capital is allowed @ 8% p.a. What will be the interest payable to Anuj during the financial year 2025–2026?

2025: 30 May Shift 1

In the Proforma of Partner's Capital Account under the Fluctuating capital Method, the Credit side includes the following items:

(A) Balance b/d (in case of credit opening balance)

(B) Salaries

(D) Profit and Loss Appropriation (for share of profit)

Choose the correct answer from the options given below:

2026: 24 May Shift 1

Profit and Loss Appropriation Account has the following features:

(A) It is merely an extension of the Profit and Loss Account of the firm.

(B) It shows how the profits are appropriated or distributed among the partners.

(D) All adjustments in respect of partner's salary, partner's commission, interest on capital, interest on drawings, etc. are made through this account.

Choose the correct answer from the options given below:

2026: 29 May Shift 1

The partnership deed of a partnership firm includes:

(A) Salaries and Commission payable to partners

(B) Rules regarding the operation of bank accounts

(D) The Accounting period of the firm

Choose the correct answer from the options given below:

Calculate Interest on drawings for the amount of Rs. 3000 drawn on September 30, 2019

Solution

Interest on Drawings Calculation

Time Period Calculation

Interest Calculation

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