Practice Sheet Ch - Fundamentals (IOC & IOD) PDF

By DeeCee – Divine Classes Practice Sheet Topics covered: 1) Calculation of Interest on Partner’s Capital. 2) Calculation of Interest on Partner’s Drawings. Q 1. Girish and Satish are partners in a firm. Their Capitals on April 1, 2018 were 5,60,...

By DeeCee – Divine Classes Practice Sheet Topics covered: 1) Calculation of Interest on Partner’s Capital. 2) Calculation of Interest on Partner’s Drawings. Q 1. Girish and Satish are partners in a firm. Their Capitals on April 1, 2018 were 5,60,000 and 4,75,000 respectively. On August 1, 2018 they decided that their Capitals should be 5,00,000 each. The necessary adjustment in the Capitals were made by introducing or withdrawing cash. Interest on Capital is allowed at 6% p.a. You are required to compute interest on Capital for the year ending March 31, 2019. Ans 1. Interest on Capitals: Girish 31,200 and Satish 29,500. Q 23. X, Y and Z are partners in a firm. Their Capitals as on April 1, 2020 were 5,00,000; 4,00,000 and 3,00,000 respectively. On July 1, 2020 they introduced further Capitals of 1,00,000; 80,000 and 50,000 respectively. On February 1, 2021 Y withdrew 15,000 from his Capital. Interest is to be allowed @ 8% p.a. on the Capitals. Compute interest on Capitals for the year ending March 31, 2021. Ans 2. Interest on Capitals: X 46,000; Y 36,600 and Z 27,000. Q 3. Arun and Barun are partners in a firm sharing profits and losses equally. Their capitals on 1st April, 2015 were 4,80,000 and 5,40,000. On 1st October, 2015, they decided that the total capital of the firm should be 10,00,000 to be contributed equally by both of them. According to the partnership deed, interest on capital is allowed to the partners @6% p.a. You are required to compute interest on capital for the year ending 31st March, 2016. Ans 3. Interest on Capitals: Arun: 29,400; Barun: 31,200 Q 4. Amit and Bramit started business on 1st April, 2021 with capitals of 15,00,000 and 9,00,000 respectively. On 1st October, 2021, they decided that their capitals should be 12,00,000 each. The necessary adjustments in capitals were made by introducing or withdrawing by cheque. Interest on capital is allowed @ 8% pa Compute interest on capital for the year ended 31st March, 2022. Ans 4. Interest on Capital: Amit - 1,08,000; Bramit - 84,000 Q 5. A and B are partners in a firm. Their capital accounts showed the balance on April 1, 2019 as 4,00,000 and 3,00,000 respectively. On August 1, 2019 they introduced further capitals of 50,000 and 40,000 respectively. B withdrew 15,000 from his capital on March 1, 2020. Interest is allowed @ 6% p.a. on the capitals. Compute interest on capitals for the year ending March 31, 2020. Ans 5. Interest on Capital: A 26,000; B 19,525 Q 6. In a partnership, partners are charged interest on drawings @ 15% p.a. During the year ended 31st March, 2022, a partner withdrew as follows: 1 By DeeCee – Divine Classes Date 1st May, 2021 1st August, 30th 31st January, 31st March, 2021 September, 2022 2022 2021 Amount (Rs) 2,000 5,000 2,000 6,000 2,000 Determine the amount of interest chargeable from the partner? Ans 6. IOD = 1,075 Q 7. A partner draws 10,000 per month. Under the Partnership Deed, interest on drawings is to be charged 15% p.a. Calculate interest if the drawings are made regularly: (i) in the beginning of the month, (ii) in the middle of the month, or (iii) at the end of the month. Ans 7. (i) IOD = 9,750 (ii) IOD = 9,000 (iii) IOD = 8,250 Q 8. Calculate interest on drawings of Siddhant @ 10% p.a. for the year ended 31st March, 2022 in each of the following cases: Case 1. If he withdrew Rs 60,000 in the beginning of each quarter. Case 2. If he withdrew Rs 60,000 at the end of each quarter. Case 3. If he withdrew Rs 90,000 in the middle of each quarter. Ans 8. (i) IOD = 15,000 (ii) IOD = 9,000 (iii) IOD = 18,000 Q 9. A, B and C started a firm on 1st October, 2021 sharing profits equally. A drew regularly Rs 4,000 in the beginning of every month for the six months ended 31st March, 2022. B drew regularly 4,000 at the end of every month for the six months ended 31st March, 2022. C drew regularly 4,000 in the middle of every month for the six months ended 31st March, 2022. Calculate interest on drawings @ 5% p.a. for the period ended 31st March, 2022. Ans 9. (i) IOD = 350 (ii) IOD = 250 (iii) IOD = 300 Q 10. Calculate interest on drawings of Rakesh @ 10% p.a. for the year ended 31st March, 2022 in each of the following alternative cases: 2 By DeeCee – Divine Classes Case 1. If his drawings during the year were 30,000. Case 2. If he withdraws 2,500 per month during the year. Ans 10. Case 1 = IOD = 1,500 Case 2 = IOD = 1,500 Q 11. The Capital Accounts of Alka and Archana showed credit balances of 4,00,000 and 3,00,000 respectively, after taking into account drawings and a net profit of 2,00,000. The drawings of the partners during the year 2018-19 were: (i) Alka withdrew 10,000 at the end of each quarter. (ii) Archana's drawings were: Rs 31st May, 2018 8,000 1st November, 2018 7,000 1st February, 2019 5,000 Calculate interest on partners' capitals@ 10% p.a. and interest on partners' drawings @ 6% p.a. for the year ended 31st March, 2019. Ans 11. I.O.C = 34,000 (Alka) ; 22,000 (Archana) I.O.D = 625 Q 12. Calculate the amount of Ram's monthly drawings for the year ended 31st March, 2022 in the following cases when the partnership deed provides for interest on drawings 10% p.a: (i) When interest on drawings is 1,300 and he withdrew a fixed amount in the beginning of each month. (ii) When interest on drawings is 1,100 and he withdrew a fixed amount at the end of every month. (iii) When interest on drawings is ₹ 1,200 and he withdrew a fixed amount during the middle of each month Ans 12. (i) Monthly Drawings = 2,000 (ii) Monthly Drawings = 2,000 (iii) Monthly Drawings = 2,000 3