Saloni and Srishti are partners in a firm. Their capital accounts as onApril 01. 2016 showed a balance of Rs. 2,00,000 and Rs. 3,00,000respectively. On July 01, 2016, Saloni introduced additional capital ofRs. 50,000 and Srishti, Rs. 60,000. On October 01 Saloni withdrew Rs.30,000, and on January 01, 2016 Srishti withdraw, Rs. 15,000 from theircapitals. Interest is allowed @ 8% p.a. Calculate interest payable on capitalto both the partners during the financial year 2016–2017.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Saloni and Srishti are partners in a firm. Their capital accounts as on
April 01. 2016 showed a balance of Rs. 2,00,000 and Rs. 3,00,000
respectively. On July 01, 2016, Saloni introduced additional capital of
Rs. 50,000 and Srishti, Rs. 60,000. On October 01 Saloni withdrew Rs.
30,000, and on January 01, 2016 Srishti withdraw, Rs. 15,000 from their
capitals. Interest is allowed @ 8% p.a. Calculate interest payable on capital
to both the partners during the financial year 2016–2017.
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