Question 64 Chapter 2 of Class 12 Part - 1 VK Publication

Question 64 Chapter 2 of Class 12 Part – 1

Table of Contents

The solution of Question 64 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

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)