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Question 59 Chapter 2 of +2-A
59. Profit earned by a partnership firm for the year ended 31st March 2018 were distributed equally between the partners – Pankaj and Anu – without allowing interest on capital. Interest due on capital was Pankaj – 3,000 and Anu – 1,000.
Pass necessary adjustment entry.
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| Anu’s Capital A/c | Dr | 1,000 | |||
| To Pankaj’s Capital A/c | 1,000 | ||||
| (Being adjustment of Interest on partners′ capital made) | |||||
Working Note: -
Statement Showing Adjustment of Profit required
| Particulars | Anu | Pankaj |
Total |
|---|---|---|---|
| Interest on Capital @ 12% | 3,000 | 1,000 | 60,000 |
| Less: Profits wrongly distributed to the extent of interest amount | 2,000 | 2,000 | 60,000 |
| -6,000 | 6,000 | - | |
Anu get less amount, so we have to credit his capital a/c with difference amount
Pankaj get extra so we have to debit his capital a/c with difference amount
Also, Check out the solved question of previous Chapters: -
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Q.No.59 | Chapter 2 – Accounting for Partnership Firms: Fundamentals | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1.
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