Question 65 Chapter 2 of Class 12 Part - 1 VK Publication

Question 65 Chapter 2 of Class 12 Part – 1

Table of Contents

The solution of Question 65 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

65. X, Y and Z are partners in a firm and their partnership deed did not provide for interest on capital which was wrongly credited at 12% p.a. on their fixed capitals of Rs 1,00,000, Rs. 1,20,000 and Rs. 1,50,000 respectively for the past three years during which the partners X,Y and Z shared profits in the ratio of 1:1:2; 3:2:1 and 1:3:1. Pass the necessary adjusting entry.

The solution of Question 65 Chapter 2 of Class 12 Part – 1: –

Table Adjustment

Particulars	X Rs.	Y Rs.	Z Rs.	Total Rs.
Interest allowed on Capitals @ 12% p.a. (dr.)
For the 1st year	12,000	14,000	18,000	44,000
For the 2nd year	12,000	14,000	18,000	44,000
For the 3rd year	12,000	14,000	18,000	44,000
(A)	(Dr.) 36,000	(Dr.) 43,200	(Dr.) 54,000	1,33,200
Division of firm’s profits will be as under . (Cr.)
For the 1st year in the ratio 1:1:2	11,100	11,100	22,200	44,400
For the 2nd year in the ratio 3:2:1	22,200	14,800	7,400	44,400
For the 3rd year in the ratio 1:3:1	8,880	26,640	8,880	44,400
(B)	(Cr.) 42,180	(Cr.) 52,540	(Cr.) 38,480	1,33,200
Net Effect (A-B)	(Cr.) 6,180	( Cr.) 9,340	(Dr.) 15,520	NIL

Adjustment Journal Entry

Date	Particular		L . F	Dr. ₹	Cr. ₹
	Z’s Current A/c	Dr.		15,520
	To X’s Current A/c				6,180
	To Y’s Current A/c				9,340
	(Being excess interest on capital provided , now rectified)