Advertisements
Advertisements
Question
Kamal, Ali and John are partners in a firm. On Kamal's retirement from the firm on 30th June, 2023, his capital account stood at ₹ 40,000 after all adjustments.
The partners decided that Kamal be paid 50% of the amount due to him immediately and the balance, alongwith interest @ 6% per annum, be paid on 30th June, 2024.
The firm closes its books on 31st March every year.
You are required to prepare Kamal's Loan Account till it is finally closed.
Solution
| Dr. | Kamal's Loan Account | Cr. | |||
| Date | Particulars | Amount (₹) | Date | Particulars | Amount (₹) |
| 2023 | 2023 | ||||
| 30th June | To Bank A/c | 20,000 | 30th June | By Kamal's Capital A/c | 40,000 |
| 2024 | 2024 | ||||
| 31st March | To Balance c/d | 20,900 | 31st March | By Interest A/c `(20,000xx6/100xx9/12)` | 900 |
| 40,900 | 40,900 | ||||
| 2024 | 2024 | ||||
| 30th June | To Bank A/c | 21,200 | 1st April | By Balance b/d | 20,900 |
| 30th June | By Interest A/c `(20,000xx6/100xx3/100)` | 300 | |||
| 21,200 | 21,200 | ||||
APPEARS IN
RELATED QUESTIONS
A and B entered into partnership of 1st April 2009 without any partnership deed. They introduced capitals of Rs 5,00,000 and Rs 3,00,000 respectively. On 31st October 2009, A advanced Rs 2,00,000 by way of loan to the firm without any agreement as to interest. The Profit and Loss Account for the year ended 31.3.2010 showed a profit of Rs 4,30,000 by the partners could not agree upon the amount of interest on loan to be charged and the basis of division of profits. Pass a journal entry for the distribution of the profit between the partners and prepare the Capital A/cs of both the partners and Loan A/c of ‘A’.
X, Y and Z are partners in a firm sharing profits in the ratio 3 : 2 : 1. On April 1st 2009, Y retires from the firm X and Z agree that the capital of the new firm shall be fixed at Rs 2,10,000 in the profit sharing ratio. The capital accounts of X and Z after all adjustment on the date of retirement showed balances of Rs 1,45,000 and Rs 63,000 respectively. State the amount of actual cash to be brought in or to be paid off to the partners.
A, B and C are partners in a firm whose books are closed on March 31st each year. B died on 30th June 2009 and according to the agreement, the share of profits of a deceased partner up to the date of death is to be calculated on the basis of the average profit for the last five year. The net profits for the last 5 years have been: 2005 , Rs 14,000; 2006 , Rs 18,000; 2007, Rs 16,000; 2008, Rs 10,000 (loss) and 2009, Rs 16,000. Calculate B’s share of the profits upto the date of death and pass necessary journal entry.
