PRACTICAL PROBLEMS

A and B are in Partnership. Their Capitals on 1^st April 2010 were Rs 30,000 each. The assets and liabilities as on 31^st March 2011 were as follows. Cash in hand Rs 2,400, Cash at Bank Rs 16,000 Bill Receivable Rs 4,000, Debtors Rs 28,600 Stock Rs 26,000. Machinery Rs 14,000, furniture Rs 8,000, Bills Payable Rs 3,000 Sundry creditors Rs 6,000 Outstanding salary Rs 800.

Additional Information:

1) Provide Rs 600 as Bad Debts and 5% R.D.D.

2) Depreciate furniture @ 5% p.a. and Machinery @ 10% p.a.

3) Stock is found undervalued by Rs 2,000.

4) Sundry creditors are found overvalued by Rs 1,000.

5) Prepaid Insurance Rs 2,000.

6) Additional capital introduced by partners Rs 4,000 each.

7) Drawings of ‘A’ Rs 3,000 and ‘B’ Rs 2,000 calculate the profit for the year ended 31^st March 2011.

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On $1$ st May $214$	Rs. $1, 000$
On $1$ st August $2014$	Rs. $3, 000$
On $1$ st January $2015$	Rs. $2, 000$
On $1$ st March $2015$	Rs. $1, 000$

Z, a partner withdraws the following sums during the year ended 31st March 2015:On 1st May 214Rs. 1,000On 1st August 2014Rs. 3,000On 1st January 2015Rs. 2,000On 1st March 2015Rs. 1,000Calculate interest on his drawing @ 6% p.a.

The correct option is B Rs. 2101,000×6%×1112=553,000×6%×812=1202,000×6%×312=301,000×6%×112=5 __________ 210 __________

Z, a partner withdraws the following sums during the year ended $31$ st March $2015$ :
On $1$ st May $214$ Rs. $1, 000$
On $1$ st August $2014$ Rs. $3, 000$
On $1$ st January $2015$ Rs. $2, 000$
On $1$ st March $2015$ Rs. $1, 000$

Calculate interest on his drawing @ $6 %$ p.a.

The correct option is B Rs. $210$
$1, 000 \times 6 % \times \frac{11}{12} = 55$
$3, 000 \times 6 % \times \frac{8}{12} = 120$
$2, 000 \times 6 % \times \frac{3}{12} = 30$
$1, 000 \times 6 % \times \frac{1}{12} = 5$

$210$