Question 59 Chapter 2 of Class 12 Part - 1 VK Publication

Question 59 Chapter 2 of Class 12 Part – 1

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The solution of Question 59 Chapter 2 of Class 12 Part – 1: –

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

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

59. J, K, L and M are partners sharing profits equally. Their capital accounts stood as: J Rs. 20,000; K Rs. 25,000; L Rs. 35,000; M Rs. 55,000. After the accounts were prepared it was discovered that interest on capital at 10% as provided in the partnership deed has not been credited to the Partners’ Capital Accounts before distributing profits. Pass adjustment entry to give effect to the above and save trouble of altering already closed accounts. Support your answer with clear workings.

The solution of Question 59 Chapter 2 of Class 12 Part – 1: –

Table showing Adjustment

Particulars	J Rs.	K Rs.	L Rs.	M Rs.	Total Rs.
Interest on capital @ 12% (to be Credited)	2,000	2,500	3,500	5,500	13,500
Less: Profit already distributed	3,375	3,375	3,375	3,375	13,500
Net Effect	(Dr.) 1,375	(Cr.) 875	( Dr.) 125	(Cr.) 2,125	NIL

Adjustment Journal Entry

Date	Particular		L . F	Dr. ₹	Cr. ₹
	J’s Capital A/c	Dr.		1,375
	K’s Capital A/c			875
	To L’s Capital A/c				125
	To M’s Capital A/c				2,125
	(Being adjustment of Interest on capital omitted in previous year)