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

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

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Question 60 Chapter 2 of Class 12 Part – 1

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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/c2,5003,7506,250
Add: Share in Profit( 45,00- 6,250)26,87511,87538,750
(A)29,37515,62545,000
Less: Profit Already distributed, not debited15,00015,000
(Out of Rs. 45,000 , first Rs. 15,000 given to Isha , remaining Rs. 30,000 in equal Ratio)15,00015,00030,000
(B)30,00015,00045,000
Net Effect (A-B)( Dr.) 625(Cr.) 625NIL

Adjustment Journal Entry

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

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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)

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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)

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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

Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size

Chapter No. 4 – Ratio Analysis

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Chapter No. 5 – Cash Flow Statement

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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