Question 11;
Ankit, Bhanu and Charu are partners in a firm sharing profits and losses
equally with capital of
`2,50,000
each. On 1st October, 2024, Ankit and Bhanu gave loans of `2,50,000 each to the firm whereas Charu
took a loan of `1,00,000 from the firm on 1ST Novermber 2024. It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan
from partners was paid on 10th April, 2025.The firm
closes its books on 31st March each year.
Pass the Journal entries in the books of
the firm for the year ended 31st March, 2025.
Answer;
|
Date |
Particulars |
|
L.F. |
Dr.` |
Cr. ` |
|
31
March |
Interest on loan
A/c To Akhil’s
loan A/c To Bhanu’s
loan A/c (Being
interest on loan provided @ 6% p.a. on 2,50,000 for six month) |
Dr. Dr. |
|
15,000 2,500 |
7,500 7,500 2,500 |
|
Charu’s capital A/c To
Interest on loan A/c
(Being
interest on loan allowed to Charu@ 6% p.a. on
1,00,000 for 5 month) (1,00,000×6÷100×5÷12) |
|||||
|
|
|
|
|
17,500 |
17,500 |
Question
12:Atul, Jetha and
Tarak are partners sharing profits equally. Jetha was given loan by the firm on 1st July, 2024 of Rs. 6,00,000. Books are closed on 31st March. What Journal
entries will be passed if;
(a) Rate of
interest is not agreed; and
(b) Rate of
interest to be charged is agreed @ 10% p.a?
Answer:
Case-A: No entry will be passed, in the
absence of agreement, interest will not be charged on Loan to Partner.
Case-B
|
JOURNAL |
|||||
|
Date |
Particulars |
|
LF |
Dr. (Rs.) |
Cr. (Rs.) |
|
2025 |
|
|
|
|
|
|
March 31 |
Jesha's Capital A/c |
Dr. |
|
45,000 |
|
|
|
To
Interest on Loan to Partner A/c |
|
|
|
45,000 |
|
|
(Interest
charged for nine months up to March, 2024) |
|
|
|
|
|
|
|
|
|
||
|
March 31 |
Interest
on Loan to Partner A/c |
Dr. |
|
45,000 |
|
|
|
To Profit & Loss A/c |
|
|
|
45,000 |
|
|
(Interest
on Loan to Prem transferred to the credit of Profit
& Loss Account) |
|
|
|
|
|
|
|
|
|
|
|
Working
notes:
Total
interest on loan for 9 month = 6,00,000×10× 9/100 ×
12= 45,000
Question
13: Parul, Paresh and Rahul are partners in
a firm. Firm gave loan to Rahul on 1st February, 2025
of 6,00,000. Interest was agreed to be charged @ 6%
p.a. Interest was paid by cheque up to February, 2025
by Rahul on 5th March, 2025 and balance was yet to be
paid by him.5th April, 2025.
Pass the
Journal entries for interest on loan to partner.
Answer:
|
JOURNAL |
|||||
|
Date |
Particulars |
|
LF |
Dr.
(₹) |
Cr.
(₹) |
|
2024 |
Bank Ac |
Dr. |
|
3,000 |
|
|
March 5 |
To Interest on Loan to Partner A/c |
|
|
|
3,000 |
|
|
(Interest paid by Rahul
for the months of February, 2024) |
|
|
|
|
|
March 31 |
Rahul's Capital A/c |
Dr. |
|
3,000 |
|
|
|
To Interest on Loan to Partner A/c |
|
|
|
3,000 |
|
|
(Interest for March 2024 charged) |
|
|
|
|
|
March 31 |
Interest on Loan to Partner A/c |
Dr. |
|
6,000 |
|
|
|
To Profit& Loss A/c |
|
|
|
6,000 |
|
|
(Interest on Loan to Rahul transferred to the credit of Profit & Loss
Account) |
|
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|
Working notes:
*Interest
for 2 month = 6,00,000×2 × 6/100×12=6000
*Interest
for month of February, which is to be paid by cheque
= 6000 × 1 / 2= 3,000
Question
14:
Vinod and
Mohan are partners. Vinod 's Capital is ` 1,00,000 and Mohan 's Capital
is ` 60,000. Interest on capital is
payable @ 6% p.a. Mohan is entitled to a salary of ` 3,000 per month. Profit for the
current year before interest and salary to Mohan is ` 80,000.
Prepare Profit and Loss Appropriation Account.
Answer:
|
Profit and Loss Appropriation
Account |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
` |
Particulars |
` |
|
|
Interest on Capital: |
|
Profit and Loss A/c (Net Profit) |
80,000 |
|
|
Vinod’s Capital A/c |
6,000 |
|
|
|
|
Mohan’s Capital A/c |
3,600 |
9,600 |
|
|
|
Salary to B (` 3,000 × 12) |
36,000 |
|
|
|
|
Profit transferred to: |
|
|
|
|
|
Vinod’s Capital A/c |
17,200 |
|
|
|
|
Mohan’s Capital A/c |
17,200 |
34,400 |
|
|
|
|
80,000 |
|
80,000 |
|
|
|
|
|
|
|
Working Notes:
WN1Calculation
of Interest on Capital
Interest on Vinod’s loan=1,00,000×6/100×6/12=6,000
Interest on
Mohan's loan=60,000×6/100×6/12=3,600
WN 2Calculation of Profit Share of each Partner
Divisible
Profit = 80,000 – 9,600 – 36,000 = 34,400
Profit share
of Vinod and Mohan =34,400×1/2=17,200
Question
15:
X, Y and Z
are partners in a firm sharing profits in 2 : 2 : 1
ratio. The fixed capitals of the partners were : X `5,00,000; Y ` 5,00,000 and Z ` 2,50,000 respectively. The
Partnership Deed provides that interest on capital is to be allowed @ 10% p.a.
Z is to be allowed a salary of `
2,000 per month. The profit of the firm for the year ended 31st March, 2025
after debiting Z's salary was
`
4,00,000.
Prepare Profit and Loss Appropriation Account.
Answer:
|
Profit and Loss Appropriation
Account |
|||||
|
Dr.
|
|
|
Cr. |
||
|
Particulars |
` |
Particulars |
` |
||
|
Interest on Capital: |
|
Profit and Loss A/c |
4,00,000 |
||
|
X’s Capital A/c |
50,000 |
|
|
|
|
|
Y’s Capital A/c |
50,000 |
|
|
|
|
|
Z’s Capital A/c |
25,000 |
1,25000 |
|
|
|
|
Profit transferred to: |
|
|
|
||
|
X’s Capital A/c |
1,10,000 |
|
|
|
|
|
Y’s Capital A/c |
1,10,000 |
|
|
|
|
|
Z’s Capital A/c |
55,000 |
2,75,000 |
|
|
|
|
|
4,00,000 |
|
4,00,000 |
||
|
|
|
|
|
||
Working Notes:
WN 1 Salary to Z
has not been debited to Profit and Loss Appropriation Account. This is because
Profit of ` 4,00,000 is given after adjusting
the Z’s salary.
WN 2Calculation
of Interest on Capital
Interest on
X^' s Capital=5,00,000×10/100=50,000
Interest on
Y's Capital=5,00,000×10/100=50,000
Interest on Z' s Capital=2,50,000×10/100=25,000
WN 3Calculation
of Profit Share of each Partner
Divisible of
Profit after Interest on Capital = ` 4,00,000-`1,25,000 = ` 2,75,000
Profit
sharing ratio = 2 : 2 : 1
Profit share
of X' s
=5,00,000×2/5=1,10,000
Profit share
of Y' s
=5,00,000×2/5=1,10,000
Profit share
of Z' s=5,00,000×1/5=55,000