Question 58 Chapter 2 of Class 12 Part – 1
58. Suman and Sudha were partners in a firm sharing profits equally. Their fixed capitals were Rs. 50,000 and Rs. 25,000 respectively. The partnership deed provided interest on capital at the rate of 12% per annum. For the year ended 31st March 2016, the profits of the firm were distributed without providing interest on capital. Pass necessary adjustment entry to rectify the error.
The solution of Question 58 Chapter 2 of Class 12 Part – 1: –
Books of the Firm
Journal Entry
| Date | Particulars | L . F |
Dr. ₹ | Cr. ₹ | |
| Sudha’s Capital A/c | Dr. | 1,500 | |||
| To Suman’s Capital A/c | 1,500 | ||||
| (Being adjustment of Interest on capital omitted in previous year) |
Working Notes:
Table showing Adjustment
| Particulars |
Rinki Rs. |
Tina Rs. | Total Rs. |
| Interest on capital @ 12% (to be Credited) | 6,000 | 3,000 | 9,000 |
| Less: Profit already distributed | 4,500 | 4,500 | 9,000 |
| Net Effect | (Cr.) 1,500 | ( Dr.) 1,500 | NIL |
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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)
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)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
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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
Chapter No. 5 – Cash Flow Statement
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