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Question 64 Chapter 2 of +2-A
64. Anil, Vijay and Anil are partners, the balances of their Capital Accounts being 30,000, 25,000
and 20,000 respectively. In arriving at these amounts profit for the year ended 31st
March 2019, 24,000 had already been credited to partners in the proportion in which they shared profits. Their drawings were 5,000 Anil, 4,000 Vijay and 3,000 Anil during the
year. Subsequently, the following omissions were noticed and it was decided to rectify the errors:
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| Anil’s Capital A/c | Dr | 550 | |||
| To Mohan’s Capital A/c | 550 | ||||
| (Being adjustment of Interest on partners′ capital made) | |||||
Working Note: -
Statement Showing Adjustment of Profit required
| Particulars | Amount of Mohan’s Capital |
Amount of Vijay’s Capital |
Amount of Anil’s Capital |
|---|---|---|---|
| Capital at the end | 30,000 | 25,000 | 20,000 |
| Less: Profit already Distributed (1:1:1) |
8,000 | 8,000 | 8,000 |
| Add: Drawings During the year | 5,000 | 4,000 | 3,000 |
| Capital at the beginning | 27,000 | 21,000 | 15,000 |
Statement Showing Adjustment of Profit required
| Particulars | Mohan |
Vijay |
Anil |
Total |
|---|---|---|---|---|
| Actual Amount of Interest on Capital @10% p.a. | 2,700 | 2,100 | 1,500 | 6,300 |
| Less: Amount of Interest on Drawing | 250 | 200 | 150 | 600 |
| Actual Amount to be credited | 2,450 | 1,900 | 1,350 | 5,700 |
| Less: wrongly Amount credited in Profit sharing ratio i.e. 1:1:1 | 1,900 | 1,900 | 1,900 | 6,000 |
| 550 | - 550 | - | ||
|
Mohan get less amount, so we have to credit his capital a/c with difference amount |
|
Anil get extra so we have to debit his capital a/c with difference amount
|
Calculation of Actual Amount of Interest on Mohan’s, Vijay's, & Anil's Capital
Interest on Capital = Opening Capital X Rate of Interest
| Interest on Mohan’s Capital | = | 27,000 | X | 10 |
| 100 |
Interest on Mohan’s Capital = 2,700/-
| Interest on Vijay's Capital | = | 21,000 | X | 10 |
| 100 |
Interest on Vijay's Capital = 2,100/-
| Interest on Anil's Capital | = | 15,000 | X | 10 |
| 100 |
Interest on Anil's Capital = 1,500 /-
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.64 | 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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