Question 56 Chapter 2 of Class 12 Part – 1
56. Rinki, Tina and Murli are partners in a firm. They contributed Rs. 75,000 each as capital three years ago. At that time Murli agreed to look after the business as Rinki and Tina were busy. The profits for the past three years were Rs. 22,500, Rs. 37,500 and Rs. 75,000 respectively. While going through the books of accounts, Rinki noticed that the profit had been distributed in the ratio of 1:1:2. When she enquired from Murli about this. Murli answered that since he looked after the business he should get more profit. Rinki disagreed and it was decided to distribute profit equally retrospectively for the last three years.
(a) You are required to make necessary corrections in the books of accounts of Rinki, Tina and Murli by passing an adjustment entry.
(b) Identify the value which was not practiced by Murli while distributing profits.
The solution of Question 56 Chapter 2 of Class 12 Part – 1: –
|Date||Particulars||L . F
||Dr. ₹||Cr. ₹|
|Murli’s Capital A/c||Dr.||22,500|
|To Rinki’s Capital A/c||11,500|
|To Tina’s Capital A/c||11,500|
|(Being adjustment entry passed )|
Statement showing Adjustment
|Tina Rs.||Murli Rs.||Total Rs.|
|Profit being wrongly credited in 1:1:2 now debited (A)||33,750||33,750||67,500||1,35,000|
|Profit should be debited equally (B)||45,000||45,000||45,000||1,35,000|
|Net Effect (A-B)||(Cr.) 11,250||( Cr.) 11,250||(Dr.) 22,500||NIL|
(b) Value Highlighted: Murli has not practiced the value of honesty and truthfulness. If he had any grievance regarding distribution of Profit, he should have discussed it with other partners.
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Also, Check out the solved question of all Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution