Partnership

Accounting

Medium

common

Saloni and Srishti are partners in a firm. Their capital accounts as on April 01, 2019 showed a balance of Rs. 2,00,000 and Rs. 3,00,000 respectively. On July 01, 2019 Saloni introduced additional capital of Rs. 50,000 and Srishti, Rs. 60,000. On October 01, 2019 Saloni withdrew Rs. 30,000, and on January 01, 2020 Srishti withdrew Rs. 15,000 from their capitals. Interest is allowed @ 8% p.a. Calculate interest payable on capital to Saloni during the financial year 2019–2020.

Rs. 8,800

Rs. 17,800

Rs. 14,400

Rs. 20,800

✅ Correct Option: 2

Since capital changes at different dates, interest needs to be calculated for each period separately using the formula:

Interest on Capital = $\text{Capital} \times \frac{\text{Rate}}{100} \times \frac{\text{Time (months)}}{12}$

Saloni's Capital Changes:

Opening Capital (April 01, 2019): Rs. 2,00,000

Additional Capital (July 01, 2019): Rs. 50,000

Withdrawal (October 01, 2019): Rs. 30,000

Period 1: April 01, 2019 to June 30, 2019 (3 months)

Capital = Rs. 2,00,000

Interest = $2,00,000 \times \frac{8}{100} \times \frac{3}{12}$ = Rs. 4,000

Period 2: July 01, 2019 to September 30, 2019 (3 months)

Capital = Rs. 2,00,000 + Rs. 50,000 = Rs. 2,50,000

Interest = $2,50,000 \times \frac{8}{100} \times \frac{3}{12}$ = Rs. 5,000

Period 3: October 01, 2019 to March 31, 2020 (6 months)

Capital = Rs. 2,50,000 - Rs. 30,000 = Rs. 2,20,000

Interest = $2,20,000 \times \frac{8}{100} \times \frac{6}{12}$ = Rs. 8,800

Total Interest on Capital for Saloni = Rs. 4,000 + Rs. 5,000 + Rs. 8,800 = Rs. 17,800

The correct answer is Option 2: Rs. 17,800

2026: 31 May Shift 1

Which of the following statement is not true in case of fluctuating capital method under accounting for partnership?

2023: 11 June Shift 3

__________ is/are not true with regard to Limited liability partnership.

(A) Separate Legal entity

(B) Unlimited liability for one partner

(D) Perpetual Succession

(E) Unlimited liability of partners

Choose the correct answer from the options given below :

2025: 15 May Shift 2

Net loss of the firm as per profit and loss account for the year ending March 31, 2024 amounted to Rs. 75,000. Yaduvanshi, Madhulika and Vidushi are partners, sharing profits and losses in the ratio of 2:2:1. Their fixed capitals on April 01, 2019 were: Yaduvanshi Rs. 5,00,000, Madhulika Rs. 4,00,000 and Vidushi Rs. 3,50,000. On the basis of the above information, pass the necessary journal entry

2025: 4 June Shift 2

Yadu, Madhu and Vidu are partners, sharing profit and losses in the ratio of 2:2:1. Their fixed capitals on April 01,2018 were:

Yadu Rs. 5,00,000, Madhu Rs. 4,00,000 and Vidu is 3,50,000. As per a partnership deed, partners are entitled to interest on capital of @5% p.a. and Yadu has to be paid a salary of Rs. 2000 per month. The net loss of the firm as per profit and loss account for the year ending March 31, 2019, amounted to Rs. 75,000. On the basis of the profit and loss appropriation account, Partners' distribution of loss would be:

2024

The adjustment required for overvaluation of closing stock, while calculating adjusted profit for calculating goodwill is

2025: 14 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Sacrificing ratio	(I) Dissolution of Partnership
(B) Gaining Ratio	(II) Admission of a New Partner
(C) Executors Account	(III) Retirement of a Partner
(D) Realisation Account	(IV) Death of a Partner

Choose the correct answer from the options given below:

Solution

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