Question 59 Chapter 2 of +2-A
Table of Contents
59. Profit earned by a partnership firm for the year ended 31st March 2018 were distributed equally between the partners – Pankaj and Anu – without allowing interest on capital. Interest due on capital was Pankaj – 3,000 and Anu – 1,000.
Pass necessary adjustment entry.
The solution of Question 59 Chapter 2 of +2-A:
| Date | Particulars |
L.F. | Debit | Credit | |
| Anu’s Capital A/c | Dr | 1,000 | |||
| To Pankaj’s Capital A/c | 1,000 | ||||
| (Being adjustment of Interest on partners′ capital made) | |||||
Working Note: –
| Statement Showing Adjustment of Profit required |
|||
| Particulars | Anu | Pankaj |
Total |
| Interest on Capital @ 12% | 3,000 | 1,000 | 60,000 |
| Less: Profits wrongly distributed to the extent of interest amount | 2,000 | 2,000 | 60,000 |
| -6,000 | 6,000 | – | |
Anu get less amount, so we have to credit his capital a/c with difference amount
Pankaj get extra so we have to debit his capital a/c with difference amount
Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
