Question 60 Chapter 2 of Class 12 Part – 1
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 ) |
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Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Chapter No. 1 – Accounting Not for Profit Organisations
Chapter No. 2 – Partnership Accounts – I (Introduction)
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Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
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)
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
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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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