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

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

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Question 59 Chapter 2 of Class 12 Part – 1

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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)2,0002,5003,5005,50013,500
Less: Profit already distributed3,3753,3753,3753,37513,500
Net Effect(Dr.) 1,375(Cr.) 875( Dr.) 125(Cr.) 2,125NIL

Adjustment Journal Entry

Date Particular L . F
 
Dr. ₹Cr. ₹
 J’s Capital A/cDr. 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)    

 

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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)

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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)

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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

Chapter No. 5 – Cash Flow Statement

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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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