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Shiv and Shankar were partners in a firm sharing profit in 3:2 ratio. Their fixed capital were₹170000 and ₹ 210000 respectively. Interest on capital @12% p.a. and Interest on drawing@18% p.a.Shiv withdrew ₹12000on 30thJune, 2018and Shankar withdrew₹18000 on 30th September,2018.
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Shiv and Shankar were partners in a firm sharing profit in 3:2 ratio. ...
Partnership Accounts


Given Information:



  • Partners: Shiv and Shankar

  • Profit Sharing Ratio: 3:2

  • Fixed Capital: Shiv - ₹170,000; Shankar - ₹210,000

  • Interest on Capital: 12% p.a.

  • Interest on Drawing: 18% p.a.

  • Withdrawals: Shiv - ₹12,000 on 30th June 2018; Shankar - ₹18,000 on 30th September 2018



Calculation of Interest on Capital:



  • Interest on Shiv's Capital = (₹170,000 x 12% x 12/12) = ₹20,400

  • Interest on Shankar's Capital = (₹210,000 x 12% x 12/12) = ₹25,200



Calculation of Interest on Drawings:



  • Interest on Shiv's Drawings = (₹12,000 x 18% x 6/12) = ₹1,080

  • Interest on Shankar's Drawings = (₹18,000 x 18% x 3/12) = ₹810



Calculation of Profit and Distribution:



  • Total Interest on Capital = ₹20,400 + ₹25,200 = ₹45,600

  • Total Interest on Drawings = ₹1,080 + ₹810 = ₹1,890

  • Net Profit = Total Income - Total Expenses = (₹45,600 - ₹1,890) = ₹43,710

  • Profit Sharing Ratio = 3:2

  • Shiv's Share = (3/5) x ₹43,710 = ₹26,226

  • Shankar's Share = (2/5) x ₹43,710 = ₹17,484



Final Accounts:



  • Shiv's Capital = ₹170,000

  • Shankar's Capital = ₹210,000

  • Shiv's Share of Profit = ₹26,226

  • Shankar's Share of Profit = ₹17,484

  • Shiv's Total = ₹196,226 (₹170,000 + ₹26,226)

  • Shankar's Total = ₹227,484 (₹210,000 + ₹17,484)

  • Total = ₹423,710 (₹196,226 + ₹227,484)

Community Answer
Shiv and Shankar were partners in a firm sharing profit in 3:2 ratio. ...
Shiv capital=175145
shankars capital=213225
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Shiv and Shankar were partners in a firm sharing profit in 3:2 ratio. Their fixed capital were₹170000 and ₹ 210000 respectively. Interest on capital @12% p.a. and Interest on drawing@18% p.a.Shiv withdrew ₹12000on 30thJune, 2018and Shankar withdrew₹18000 on 30th September,2018. Related: ICAI Notes of Ch 8.1 - Introduction to Partnership Accounts, Fundamental of Accounting (Part - 2)?
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Shiv and Shankar were partners in a firm sharing profit in 3:2 ratio. Their fixed capital were₹170000 and ₹ 210000 respectively. Interest on capital @12% p.a. and Interest on drawing@18% p.a.Shiv withdrew ₹12000on 30thJune, 2018and Shankar withdrew₹18000 on 30th September,2018. Related: ICAI Notes of Ch 8.1 - Introduction to Partnership Accounts, Fundamental of Accounting (Part - 2)? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Shiv and Shankar were partners in a firm sharing profit in 3:2 ratio. Their fixed capital were₹170000 and ₹ 210000 respectively. Interest on capital @12% p.a. and Interest on drawing@18% p.a.Shiv withdrew ₹12000on 30thJune, 2018and Shankar withdrew₹18000 on 30th September,2018. Related: ICAI Notes of Ch 8.1 - Introduction to Partnership Accounts, Fundamental of Accounting (Part - 2)? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Shiv and Shankar were partners in a firm sharing profit in 3:2 ratio. Their fixed capital were₹170000 and ₹ 210000 respectively. Interest on capital @12% p.a. and Interest on drawing@18% p.a.Shiv withdrew ₹12000on 30thJune, 2018and Shankar withdrew₹18000 on 30th September,2018. Related: ICAI Notes of Ch 8.1 - Introduction to Partnership Accounts, Fundamental of Accounting (Part - 2)?.
Solutions for Shiv and Shankar were partners in a firm sharing profit in 3:2 ratio. Their fixed capital were₹170000 and ₹ 210000 respectively. Interest on capital @12% p.a. and Interest on drawing@18% p.a.Shiv withdrew ₹12000on 30thJune, 2018and Shankar withdrew₹18000 on 30th September,2018. Related: ICAI Notes of Ch 8.1 - Introduction to Partnership Accounts, Fundamental of Accounting (Part - 2)? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
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