Question 62 Chapter 2 of Class 12 Part - 1 VK Publication

Question 62 Chapter 2 of Class 12 Part – 1

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The solution of Question 62 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

62. Nidhi, Sidhi and Ridhi are partners sharing profits and losses in the ratio of 2:2:1 with fixed capital contribution of Rs. 50,000: Rs. 60,000 and Rs. 70,000 respectively. They earned profit of Rs. 45,000 which was distributed in the profit-sharing ratio of partners. Later it was found that the following were not given effect to:
(i) Interest on capital @ 5% pa. (ii) Interest on drawings at 6% pa. Drawings of Nidhi, Sidhi and Ridhi were Rs. 10,000; Rs. 12,000 and Rs. 9,000 respectively (iii) Ridhi’s salary and commission not credited were Rs. 7,000 and Rs. 10,000. (iv) Sidhi’s salary not credited was Rs. 5,000. Pass the necessary adjusting journal entry

The solution of Question 62 Chapter 2 of Class 12 Part – 1: –

Table Adjustment

Particulars	Nidhi Rs.	Sidhi Rs.	Ridhi Rs.	Total Rs.
Interest on Capital @5% p.a. (Cr)	2,500	3,000	3,500	9,000
Add: Partner’s Salary (Cr.)	–	5,000	7,000	12,000
Add: Partner’s Commission (Cr)	–	–	10,000	10,000
	2,500	8,000	20,500	31,000
Less: Interest on Drawings (Dr.)	300	360	270	930
Loss to the firm due to adjustments	2,200	7,640	20,230	30,070
Division of firm’s loss Rs. 30,070 in the ratio of 2:2:1	12,028	12,028	6,014	30,070
Net Effect (A-B)	(Dr.) 9,828	( Dr.) 4,388	(Cr.) 14,216	NIL

Adjustment Journal Entry

Date	Particular		Dr. ₹	Cr. ₹
	Nidhi’s Current A/c	Dr.	9,828
	Sidhi’s Current A/c		4,388
	To Ridhi’s Currentl A/c			14,216
	(Being partners current accounts are adjusted in respect of interest on capital, interest on drawings salaries, and commission omitted in previous year accounts)