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Question 56 Chapter 2 of Class 12 Part – 1 VK Publication

Question 56 Chapter 2 of Class 12 Part - 1 VK Publication
Question 56 Chapter 2 of Class 12 Part - 1 VK Publication

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Question 56 Chapter 2 of Class 12 Part – 1

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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: –

Journal Entry

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 )        

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Working Notes:

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Statement showing Adjustment 

Particulars 

 Rinki Rs. 

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

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I (Introduction)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

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Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)

Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

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Chapter No. 10 – Company Accounts (Redemption of Debentures)

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company

Chapter No. 2 – Financial Statement Analysis

Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size

Chapter No. 4 – Ratio Analysis

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Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms 

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