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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Mita and Usha are partners in a firm sharing profits in the ratio of 2 : 3. Their Capital Accounts as on 1st April, 2015 showed balances of ₹1,40,000 and ₹1,20,000 respectively. The drawings of Mita and Usha during the year 2015-16 were ₹32,000 and ₹24,000 respectively. Both amounts were withdrawn on 1st January, 2016. It was subsequently found that the following items had been omitted while preparing the final accounts for the year ended 31st March, 2016: (a) Interest on capital @ 6% p.a.; (b) Interest on drawings @ 6% p.a.; (c) Mita was entitled to a commission of ₹8,000 for the whole year. Showing your working clearly, pass a rectifying entry in the books of the firm.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Usha’s Capital A/c Dr. | 6,816 | |||
| To Mita’s Capital A/c | 6,816 | |||
| (Adjustment of omitted items) |
Statement Showing Adjustment
| Particulars | Mita (₹) | Usha (₹) | Total (₹) |
|---|---|---|---|
| Interest on Capital @ 6% | 8,400 | 7,200 | 15,600 |
| Less: Interest on Drawings @ 6% | (480) | (360) | (840) |
| Add: Commission | 8,000 | – | 8,000 |
| Right Share | 15,920 | 6,840 | 22,760 |
| Less: Wrongly credited as profit (2 : 3) | (9,104) | (13,656) | (22,760) |
| Net Effect | +6,816 (Cr.) | –6,816 (Dr.) | Nil |
Interest on drawings is for 3 months (withdrawn on 1st January, 2016): Mita = ₹32,000 × 6% × 3/12 = ₹480; Usha = ₹24,000 × 6% × 3/12 = ₹360.
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.64 - 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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