Question 64 Chapter 2 of Class 12 Part – 1
64. A, Band Care partners in a firm sharing profits and losses in the ratio of 2:3:5. Their fixed capitals were Rs. 15,00,000, Rs. 30,00,000 and Rs. 60,00,000 respectively. For the year ended on 31st March, 2018, interest on capital was credited to them @ 12% instead of 10%. Pass the necessary adjustment entry.
The solution of Question 64 Chapter 2 of Class 12 Part – 1: –
Table Adjustment
| Particulars |
A Rs. |
B Rs. |
C Rs. | Total Rs. |
| Interest that already have been credited @12% | 1,80,000 | 3,60,000 | 7,20,000 | 12,60,000 |
| Less: Interest that should have been credited | 1,50,000 | 3,00,000 | 6,00,000 | 10,50,000 |
| Partners over credited with amount (Dr.) (A) | 30,000 | 60,000 | 1,20,000 | 2,10,000 |
| By allowing this interest , the profits of the firms will be increased by Rs. 2,10,00 which will be divided in the ratio of 2:5:3 (Cr.) (B) | 42,000 | 63,000 | 1,05,000 | 2,10,000 |
| Net Effect (A-B) | (Cr.) 12,000 | ( Cr.) 3,000 | (Dr.) 15,000 | NIL |
Adjustment Journal Entry
| Date | Particular | L . F |
Dr. ₹ | Cr. ₹ | |
| C’s Current A/c | Dr. | 15,000 | |||
| To A’s Current A/c | 12,000 | ||||
| To B’s Current A/c | 3,000 | ||||
| (Being excess interest on capital provided , now rectified) |
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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)
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
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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