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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ram, Mohan and Sohan were partners sharing profits in the ratio of 2 : 1 : 1. Ram withdrew ₹3,000 every month and Mohan withdrew ₹4,000 every month. Interest on drawings @ 6% p.a. was charged, whereas the Partnership Deed was silent about interest on drawings. Showing your working clearly, pass the necessary adjustment entry to rectify the error.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Ram’s Capital A/c Dr. | 180 | |||
| Sohan’s Capital A/c Dr. | 630 | |||
| To Mohan’s Capital A/c | 810 | |||
| (Interest on drawings wrongly charged, now rectified) |
Statement Showing Adjustment
| Particulars | Ram | Mohan | Sohan | Total |
|---|---|---|---|---|
| Interest on drawings wrongly charged (reversed, Cr.) | 1,080 | 1,440 | – | 2,520 |
| Less: ₹2,520 wrongly added to profit, reversed (2 : 1 : 1) (Dr.) | (1,260) | (630) | (630) | (2,520) |
| Net Effect | –180 (Dr.) | +810 (Cr.) | –630 (Dr.) | Nil |
Working Note: Interest wrongly charged – Ram = ₹36,000 × 6% × 6/12 = ₹1,080; Mohan = ₹48,000 × 6% × 6/12 = ₹1,440.
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.62 - 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.
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