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**CBSE accountancy class 12 chapter Accounting for Partnership : Basic Concepts – Fixed and Fluctuating Capitals nuerical questions solutions**. You can find the questions/answers/solutions for the**chapter 2**of**CBSE class 12 accountancy**in this page. So is the case if you are looking for**CBSE class 12 Commerce**related topic**Accounting for Partnership : Basic Concepts – Fixed and Fluctuating Capitals nuerical questions solutions**. If you’re looking for theoretical questions related to Test Your Understanding, Do It Yourself, Short Answers or Long Answers or Distribution of Profits Solutions or Guarantee of Profit to the Partners Solutions or Past Adjustments Solutions, you can find them at⁕

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Accounting for Partnership : Basic Concepts – Fixed and Fluctuating Capitals Solutions

1. Triphati and Chauhan are partners in a firm sharing profits and losses in the ratio of 3:2. Their capitals were ₹ 60,000 and ₹ 40,000 as on April 01, 2015. During the year they earned a profit of ₹ 30,000. According to the partnership deed both the partners are entitled to ₹ 1,000 per month as salary and 5% p.a. interest on their capital. They are also to be charged an interest of 5% p.a. on their drawings, irrespective of the period, which is ₹ 12,000 for Tripathi, ₹ 8,000 for Chauhan. Prepare Partner’s capital/current Accounts when, capitals are fixed.

We need to consider the following two cases.

(a)

Partners’ salaries, Interest on Capital and Interest on Drawings are charged against the profit

(b)

Partners’ salaries, Interest on Capital and Interest on Drawings are distributed out of profit.

It is not explicitly specified in the problem statement that which one of these two methods should be used. So, we’re providing the solution in both the methods. However, note that the default method that should be considered is the one where in the charges are distributed out of profit (b). However, we’re providing here both the methods to get the students acquainted with both of them.

(a) When the Partners’ salaries, Interest on Capital and Interest on Drawings are charged against the profit.

Profit and Loss Appropriation Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

₹

₹

Date

Particulars

J.F.

Amount

₹

₹

To Profit Transferred to:

By Profit and Loss A/c

30,000

Tripathi’s Current A/c

18,000

Chauhan’s Current A/c

12,000

30,000

30,000

30,000

Partners’ Capital Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

₹

Tripathi

₹

Tripathi

Amount

₹

Chauhan

₹

Chauhan

Date

Particulars

J.F.

Amount

₹

Tripathi

₹

Tripathi

Amount

₹

Chauhan

₹

Chauhan

To Balance c/d

60,000

40,000

By Balance b/d

60,000

40,000

60,000

40,000

60,000

40,000

Partners’ Current Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

₹

Tripathi

₹

Tripathi

Amount

₹

Chauhan

₹

Chauhan

Date

Particulars

J.F.

Amount

₹

Tripathi

₹

Tripathi

Amount

₹

Chauhan

₹

Chauhan

To Drawings A/c

12,000

8,000

By Interest on Capital A/c

3,000

2,000

To Interest on Drawings A/c

600

400

By Partners’ Salaries A/c

12,000

12,000

To Balance c/d

20,400

17,600

By Profit and Loss Appropriation A/c

18,000

12,000

33,000

26,000

33,000

26,000

(b) When the Partners’ salaries, Interest on Capital and Interest on Drawings are distributed out of profit.

Profit and Loss Appropriation Account

Dr.

Cr.

Particulars

Amount

₹

₹

Particulars

Amount

₹

₹

To Partners’ Salary

By Profit and Loss A/c

30,000

Tripathi A/c

12,000

By Interest on Drawings

Chauhan A/c

12,000

24,000

Tripathi A/c

600

To Interest on Capital

Chauhan A/c

400

1,000

Tripathi A/c

3,000

Chauhan A/c

2,000

5,000

To Profit Transferred to

Tripathi’s Current A/c

1,200

Chauhan’s Current A/c

800

2,000

31,000

31,000

Partners’ Capital A/c

Dr.

Cr.

Date

Particulars

J.F.

Amount

₹

Tripathi

₹

Tripathi

Amount

₹

Chauhan

₹

Chauhan

Date

Particulars

J.F.

Amount

₹

Tripathi

₹

Tripathi

Amount

₹

Chauhan

₹

Chauhan

To Balance c/d

60,000

40,000

By Balance b/d

60,000

40,000

60,000

40,000

60,000

40,000

Partners’ Current Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

₹

Tripathi

₹

Tripathi

Amount

₹

Chauhan

₹

Chauhan

Date

Particulars

J.F.

Amount

₹

Tripathi

₹

Tripathi

Amount

₹

Chauhan

₹

Chauhan

To Drawings A/c

12,000

8,000

By Partners’ Salaries A/c

12,000

12,000

To Interest on Drawings A/c

600

400

By Interest on Capital A/c

3,000

2,000

To Balance c/d

3,600

6,400

By Profit and Loss Appropriation A/c

1,200

800

16,200

14,800

16,200

14,800

Working Notes:

Salary:

Salary per month

= ₹ 1,000

Salary per year

= ₹ 1,000 × 12

= ₹ 12,000

Total Salary paid

= ₹ 24,000

Interest on Capital:

Tripathi

{= ₹~60,000 × \dfrac{5}{100}}

= ₹ 3,000

Chauhan

{= ₹~40,000 × \dfrac{5}{100}}

= ₹ 2,000

Total Interest on Capital

= ₹ 5,000

Interest on Drawings:

Tripathi

{= ₹~12,000 × \dfrac{5}{100}}

= ₹ 600

Chauhan

{= ₹ 8,000 × \dfrac{5}{100}}

= ₹ 400

Total Interest on Drawings

= ₹ 1,000

Profit

Net Profit

₹ 30,000

Partners’ Salaries

(₹ 24,000)

Interest on Capital

(₹ 5,000)

Interest on Drawings

₹ 1,000

₹ 2,000

Tripathi’s share

{= ₹~2,000 × \dfrac{3}{5}}

= ₹ 1,200

Chauhan’s share

{= ₹ 2,000 × \dfrac{2}{5}}

= ₹ 800

2. Anubha and Kajal are partners of a firm sharing profits and losses in the ratio of 2:1. Their capital, were ₹ 90,000 and ₹ 60,000. The profit during the year were ₹ 45,000. According to partnership deed, both partners are allowed salary, ₹ 700 per month to Anubha and ₹ 500 per month to Kajal. Interest allowed on capital @ 5%p.a. The drawings during the year were ₹ 8,500 for Anubha and ₹ 6,500 for Kajal. Interest is to be charged @ 5% p.a. on drawings. Prepare partners capital accounts, assuming that the capital account are fluctuating.

We need to consider the following two cases.

(a)

Partners’ salaries, Interest on Capital and Interest on Drawings are charged against the profit

(b)

Partners’ salaries, Interest on Capital and Interest on Drawings are distributed out of profit.

It is not explicitly specified in the problem statement that which one of these two methods should be used. So, we’re providing the solution in both the methods. However, note that the default method that should be considered is the one where in the charges are distributed out of profit (b). However, we’re providing here both the methods to get the students acquainted with both of them.

(a) When the Partners’ salaries, Interest on Capital and Interest on Drawings are charged against the profit.

Profit and Loss Appropriation Account

Dr.

Cr.

Particulars

Amount

₹

₹

Particulars

Amount

₹

₹

To Profit Transferred to

By Profit and Loss A/c

45,000

Anubha’s Current A/c

30,000

Kajal’s Current A/c

15,000

45,000

45,000

45,000

Partners’ Capital Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

₹

Anubha

₹

Anubha

Amount

₹

Kajal

₹

Kajal

Date

Particulars

J.F.

Amount

₹

Anubha

₹

Anubha

Amount

₹

Kajal

₹

Kajal

To Drawings A/c

8,500

6,500

By Balance b/d

90,000

60,000

To Interest on Drawings A/c

425

325

By Partners’ Salaries A/c

8,400

6,000

To Balance c/d

1,23,975

77,175

By Interest on Capital A/c

4,500

3,000

By Profit and Loss Appropriation A/c

30,000

15,000

1,32,900

84,000

1,32,900

84,000

(b) When the Partners’ salaries, Interest on Capital and Interest on Drawings are distributed out of profit.

Profit and Loss Appropriation Account

Dr.

Cr.

Particulars

Amount

₹

₹

Particulars

Amount

₹

₹

To Parterners’ Salaries

By Profit and Loss A/c

45,000

Anubha A/c

8,400

By Interest on Drawings A/c

Kajal

6,000

14,400

Anubha

425

Interest on Capital

Kajal

325

750

Kajal A/c

4,500

Kajal A/c

3,000

7,500

To Profit Transferred to

Anubha’s Capital A/c

15,900

Kajal’s Capital A/c

7,950

23,850

45,750

45,750

Partners’ Capital Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

₹

Anubha

₹

Anubha

Amount

₹

Kajal

₹

Kajal

Date

Particulars

J.F.

Amount

₹

Anubha

₹

Anubha

Amount

₹

Kajal

₹

Kajal

To Drawings A/c

8,500

6,500

By Balance b/d

90,000

60,000

To Interest on Drawings A/c

425

325

By Partners’ Salaries A/c

8,400

6,000

To Balance c/d

1,09,875

70,125

By Interest on Capital A/c

4,500

3,000

By Profit and Loss Appropriation A/c

15,900

7,950

1,18,800

76,950

1,18,800

76,950

Working Notes:

Salary

Anubha’s monthly salary

= ₹ 700

Anubha’s yearly salary

= ₹ 700 × 12

= ₹ 8,400

Kajal’s monthly salary

= ₹ 500

Kajal’s yearly salary

= ₹ 500 × 12

= ₹ 6,000

Total

= ₹ 14,400

Interest on Capital

Anubha

{= ₹~90,000 × \dfrac{5}{100}}

= ₹ 4,500

Kajal

{= ₹ 60,000 × \dfrac{5}{100}}

= ₹ 3,000

Total

= ₹ 7,500

Interest on Drawings

Anubha

{= ₹ 8,500 × \dfrac{5}{100}}

= ₹ 425

Kajal

{= ₹~6,500 × \dfrac{5}{100}}

= ₹ 325

Total

= ₹ 750

Profit

Net Profit

₹ 45,000

Total Salary

(₹ 14,400)

Interest on Capital

(₹ 7,500)

Interest on Drawings

₹ 750

₹ 23,850

Anubha’s Share

{= ₹~23,850 × \dfrac{2}{3}}

= ₹ 15,900

Kajal’s Share

{= ₹~23,850 × \dfrac{1}{3}}

= ₹ 7,950