Question 59 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 59 Chapter 2 of +2-A

Question 59 Chapter 2 of +2-A

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)

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

2 Book 1 min - Question 59 Chapter 2 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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