Question 60 Chapter 2 of Class 12 Part - 1 VK Publication

Question 60 Chapter 2 of Class 12 Part – 1

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The solution of Question 60 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

60. Isha and Nisha are equal partners and have decided that the first Rs. 15,000 of the profits earned by them should be provided to Isha. The profit for the year was Rs. 45,000 which has already been distributed to the partners without giving effect to interest on capital which was to be provided at 5%. The opening capitals of Isha and Nisha were Rs. 50,000 and Rs. 75,000. Pass necessary adjusting entry giving effect to the above.

The solution of Question 60 Chapter 2 of Class 12 Part – 1: –

Table showing Adjustment

Particulars	Isha Rs.	Nisha Rs.	Total Rs.
Interest on Capital A/c	2,500	3,750	6,250
Add: Share in Profit( 45,00- 6,250)	26,875	11,875	38,750
(A)	29,375	15,625	45,000
Less: Profit Already distributed, not debited	15,000	–	15,000
(Out of Rs. 45,000 , first Rs. 15,000 given to Isha , remaining Rs. 30,000 in equal Ratio)	15,000	15,000	30,000
(B)	30,000	15,000	45,000
Net Effect (A-B)	( Dr.) 625	(Cr.) 625	NIL

Adjustment Journal Entry

Date	Particular		L . F	Dr. ₹	Cr. ₹
	Isha’s Capital A/c	Dr.		625
	To Nisha’s Capital A/c				625
	(Being adjustment made for Interest on capital )