Rakshit and Malik are partners in a firm sharing profits and losses in the ratio of 4 : 1. On 1st April, 2021, their capitals were Rs. 1,20,000 and Rs.80,000 respectively. On 1st December, 2021, they decided that the total capital of the firm should be Rs.3,00,000 to be contributed by them in the ratio of 2 : 1. According to the partnership deed, interest on capital is allowed to the partners @ 6% p.a. Calculate interest on capital to be allowed for the year ending 31st March, 2022

Question 1 Rara and Riri are in partnership sharing profits and losses 4:2. Under the terms of the partnership agreement, the partners are entitled to interest on capital at 7 per cent per annum and Riri is entitled to a yearly salary of RM7,500. Interest is charged on drawings at 5 per cent per annum and the amounts of interest are given below. No interest is charged or allowed on current accounts. The partners’ capitals at 1 July 2021 were: Rara RM40,000 and Riri RM20,000. The net trading profit of the firm, before dealing with partners’ interest and Riri’s salary for the year ended 30 June 2022 was RM25,900. Interest on drawings for the year amounted to RM400 for Rara and RM370 for Riri. At 1 July 2020, there was a credit balance of RM1,200 on Riri’s current account, while Rara’s current account balance was a debit of RM500. Drawings for the year to 30 June 2022 amounted to RM10,000 for Rara and RM15,000 for Riri. Required: Prepare, for the year to 30 June 2022: (a)The firm’s profit and loss appropriation account

P and Q were partners in a firm sharing profits in 3:1 ratio. Their respective fixed capitals were10,00,000 and 6,00,000. The partnership deed provided interest on capital @ 12% p.a. Thepartnership deed further provided that interest on capital will be allowed fully even if it will resultinto a loss to the firm. The net profit of the firm for the year ended 31st March, 2018 was 1,50,000.Pass necessary Journal Entries in the books of the firm allowing interest on capital and divisionof profit/loss among the partners.

Fixed CapitalsQ. 9. Y and Z are partners with capitals of 2,50,000 and 1,50,000 respectivelyon 1st April, 2023. Each partner is entitled to 9% p.a. interest on his capital. Z isentitled to a salary of 60,000 p.a. together with a commission of 6% of Net Profitafter charging his commission. Net profit for the year ended 31st March, 2024 amountto ₹2,12,000. Prepare Partner's Capital Accounts: (i) when capitals are fixed, and (ii)when capitals are fluctuating.[Ans. Divisible Profits 1,04,000; Commission to Z 12,000.M(i) When capitals are fixed:Current A/c balances: YCapital A/c balances : Y74,500 (Cr.); Zgides1,37,500 (Cr.)2,50,000 (Cr.);Z1,50,000 (Cr.)(ii) When capitals are fluctuating:yehand2,87,500 (Cr.)]Capital A/c balances: Y 3,24,500 (Cr.); ZHint: When the profit sharing ratio of the partners is not given in the question, the profitswill be shared equally. Son ofoda oq aldatudiuzib sd to die()0.10 1 Rand C were partners in a firm haying capitals of 2,00,000; 2,00,000

Read the following hypothetical situation and answer question no. 9 and 10.Ana and Anne started a partnership business on 1st April, 2022. Their capital contributions wereRs. 3, 00,000 and Rs. 1, 00,000 respectively. Ana rented her property to carry on business forRs.2, 500 p.m. Interest on capitals @12% p.a. Ana, to get a salary of Rs. 4,000 p.m. Anne to geta commission of 2% of the net profit. Profits are to be shared in the ratio of 3:2. The profits forthe year ended 31st March, 2023 before providing for rent was Rs. 2, 00,000.Dr. Profit and Loss Appropriation Account Cr.for the year ended 31st March, 2023Particulars Rs. Particulars Rs.To Interest on capital:AnaAnneTo Partner’s Salary:AnaTo Anne’s commissionTo Profit transferred toAna’s Capital A/cAnne’s Capital A/c______________48,000_______(1)______________By Profit and Loss A/c _______(2)_______ _______9. The amount to be reflected in blank (1) will be:(a) Rs.3,720(b) Rs.3,400(c) Rs. 2,800(d) Rs.2,94010. The amount to be reflected in blank (2) will be:(a) Rs.1,62,000(b) Rs. 1,74,500(c) Rs. 1,71,400(d) Rs.1,70,000

P and Q entered into a partnership investing Rs.16000 and Rs. 12000 respectively. After 3 months P withdraw Rs. 5000, while Q invested Rs. 5000 more. After 3 more months R joins the business with a capital of Rs. 21000. The share of Q exceeds that of R, out of the total profit of Rs. 26400 after one year byOptionsRs. 2000Rs. 1900Rs. 3600Rs. 6800