# Question 61 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 61 Chapter 2 of +2-A

61. Ram, Mohan and Sohan sharing profits and losses equally have capitals of 1,20,000, 90,000 and 60,000 respectively. For the year ended 31st March 2019, interest was credited to them @ 6% instead of 5%.

The solution of Question 61 Chapter 2 of +2-A

:

 Date Particulars L.F. Debit Credit Ram’s Capital A/c Dr 300 To Sohan’s Capital A/c 300 (Being adjustment of Interest on partners′ capital made)

Working Note: –

 Statement Showing Adjustment of Profit required Particulars Ram Mohan Sohan Total Actual Amount of Interest on Capital @5% p.a. 6,000 4,500 3,000 13,500 Less: Wrong Amount of Interest on Capital @6% p.a. credited 7,200 5,400 3,600 16,200 Extra Amount credited – 1,200 – 900 – 600 -2,700 Less: Extra Amount credited in Profit sharing ratio i.e. 1:1:1 900 900 900 -2,700 -300 – 300 – Ram get extra so we have to debit his capital a/c with difference amount Sohan get less amount, so we have to credit his capital a/c with difference amount

Calculation of Actual Amount of Interest on Ram’s, Mohan’s, & Sohan’s Capital
Interest on Capital = Opening Capital X Rate of Interest

 Interest on Ram’s Capital = 1,20,000 X 5 100

Interest on Ram’s Capital =6,000/-

 Interest on Mohan’s Capital = 90,000 X 5 100

Interest on Mohan’s Capital = 4,500/-

 Interest on Sohan’s Capital = 60,000 X 5 100

Interest on Sohan’s Capital = 3,000 /-

Calculation of the Wrong Amount of Interest on Ram’s, Mohan’s, & Sohan’s Capital

Interest on Capital = Opening Capital X Rate of Interest

 Interest on Ram’s Capital = 1,20,000 X 6 100

Interest on Ram’s Capital = 7,200/-

 Interest on Mohan’s Capital = 90,000 X 6 100

Interest on Mohan’s Capital = 5,400/-

 Interest on Sohan’s Capital = 60,000 X 6 100

Interest on Sohan’s Capital = 3,600 /-

Also, Check out the solved question of previous Chapters: –

### T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

### T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement