Question

Show how the following will be recorded in the Capital Accounts of the Partners Sohan and Mohan when their capitals are fluctuating:

	Sohan (Rs.)	Mohan (Rs.)
Capitals on 1st April, 2017	4,00,000	3,00,000
Drawings during 2017-18	50,000	30,000
Interest on Capital	5%	5%
Interest on Drawings	1,250	750
Share of Profit for 2017-18	60,000	50,000
Partner's Salary	36,000	....
Commission	5,000	3,000

Answer 1

PARTNER'S CAPITAL A/C
Dr. Cr.

Particulars	Sohan	Mohan	Particulars	Sohan	Mohan
To Drawings a/c	50000	30000	By Balance b/d	400000	300000
To interest on drawings a/c	1250	750	By interest on capital a/c	20000	15000
To Balance c/d	469750	337250	By Salary a/c	36000	Nil
			By Commission a/c	5000	3000
			By profit and loss appropriation a/c	60000	50000
	521000	368000		521000	368000