Homework Answers
Answer:
| Calculation of Partner's Capital balances on December 31, 2015: | ||||||
| Particulars | P | |||||
| HH | MM | AA | Total | |||
| Opening balances as on January 1, 2015 | 1,50,000 | 2,00,000 | 2,50,000 | 6,00,000 | ||
| Add: Additional Capital during the year: | ||||||
| July 1 | 30,000 | 30,000 | ||||
| August 1 | 20,000 | 20,000 | ||||
| Less: Drawings during the year: | ||||||
| October 1 | 10,000 | 10,000 | 20,000 | |||
| November 1 | 30,000 | 30,000 | ||||
| Add: Operating income for the year ending transfer to capital account(Refer Working Note No.1) | 53,180 | 62,060 | 60,760 | 1,76,000 | ||
| Closing balances as on December 31, 2015 | 2,23,180 | 2,72,060 | 2,80,760 | 7,76,000 | ||
| Answer: d. HH, P223,180; MM, P 272,060; AA, P 280,760 | ||||||
| Working note 1: Calculation of profit during the year ending transfer to partner's capital account: | ||||||
| Particulars | P | |||||
| HH | MM | AA | Total | |||
| Oerating income for the year ending | 1,76,000 | |||||
| Distribution of operating income as below: | ||||||
| Salary | 24,000 | 18,000 | 12,000 | 54,000 | ||
| Interest on capital @ 12% (Refer working note no. 2) | 19,500 | 24,700 | 29,400 | 73,600 | ||
| Remaining operation income balance distributed to partners in ratio of 2:4:4 | 9,680 | 19,360 | 19,360 | 48,400 | ||
| Total operating income transfer to partner's capital account | 53,180 | 62,060 | 60,760 | 1,76,000 | ||
| Working note 2: Calculation of Interest on partner's capital: | ||||||
| Interest to Partner HH: | ||||||
| Particulars | Opening balance | Addition/ drawings (-) | Closing balance | Months for interest calculation | Interest @ 12 % on Closing balance | |
| Opening balances as on January 1, 2015 | 1,50,000 | - | 1,50,000 | 6 | 9,000 | |
| July 1 | 1,50,000 | 30,000 | 1,80,000 | 3 | 5,400 | |
| October 1 | 1,80,000 | (10,000) | 1,70,000 | 3 | 5,100 | |
| Total | 1,50,000 | 20,000 | 1,70,000 | 12 | 19,500 | |
| Interest to Partner MM: | ||||||
| Particulars | Opening balance | Addition/ drawings (-) | Closing balance | Months for interest calculation | Interest @ 12 % on Closing balance | |
| Opening balances as on January 1, 2015 | 2,00,000 | - | 2,00,000 | 7 | 14,000 | |
| August 1 | 2,00,000 | 20,000 | 2,20,000 | 2 | 4,400 | |
| October 1 | 2,20,000 | (10,000) | 2,10,000 | 3 | 6,300 | |
| Total | 2,00,000 | 10,000 | 2,10,000 | 12 | 24,700 | |
| Interest to Partner AA: | ||||||
| Particulars | Opening balance | Addition/ drawings (-) | Closing balance | Months for interest calculation | Interest @ 12 % on Closing balance | |
| Opening balances as on January 1, 2015 | 2,50,000 | - | 2,50,000 |
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