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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ram, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their capitals were fixed at ₹3,00,000, ₹1,00,000 and ₹2,00,000. For the year ended 31st March, 2024, interest on capital was credited to them @ 9% instead of 10% p.a. Show your working notes clearly and pass the necessary adjustment entry.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Shyam’s Current A/c Dr. | 200 | |||
| Mohan’s Current A/c Dr. | 400 | |||
| To Ram’s Current A/c | 600 | |||
| (Short interest on capital, now adjusted) |
Statement Showing Adjustment
| Particulars | Ram | Shyam | Mohan | Total |
|---|---|---|---|---|
| Interest on capital due @ 10% | 30,000 | 10,000 | 20,000 | 60,000 |
| Less: Interest credited @ 9% (reversed) | (27,000) | (9,000) | (18,000) | (54,000) |
| Short interest ₹6,000 redistributed as profit (2 : 1 : 2) | (2,400) | (1,200) | (2,400) | (6,000) |
| Net Effect | +600 (Cr.) | –200 (Dr.) | –400 (Dr.) | Nil |
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 "T.S. Grewal Class 12 Chapter 1 Q.61 - Accounting for Partnership Firm Fundamentals", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Accounting for Partnership Firm – Fundamentals.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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