Question 66 Chapter 2 of Class 12 Part – 1
66. P, Q and Rare partners in a firm sharing profits and losses in the ratio 5:3:2. Their capitals (fixed) are Rs. 4,00,000; Rs. 3,00,000; and Rs. 2,50,000 respectively. For the year ended 31st March, 2018 interest on capital was credited to them @8% instead of 10% Give adjustment journal entry.
The solution of Question 66 Chapter 2 of Class 12 Part – 1: –
Table Adjustment
| Particulars |
P Rs. |
Q Rs. |
R Rs. | Total Rs. |
| Interest that Should have been credited @12% | 40,000 | 30,000 | 25,000 | 95,000 |
| Less: Interest already credited @ 8% | 32,000 | 24,000 | 20,000 | 76,000 |
| Partners less credited with (Cr.) (A) | 8,000 | 6,000 | 5,000 | 19,000 |
| By allowing this interest , the profits of the firms will be reduced by Rs. 19,000 which will be divided in the ratio of 5:3:2 (Dr.) (B) | 9,500 | 5,700 | 3,800 | 19,000 |
| Net Effect (A-B) | (Dr.) 1,500 | ( Cr.) 300 | (Cr.) 1,200 | NIL |
Adjustment Journal Entry
| Date | Particular | L . F |
Dr. ₹ | Cr. ₹ | |
| P’s Current A/c | Dr. | 1,500 | |||
| To Q’s Current A/c | 300 | ||||
| To R’s Current A/c | 1,200 | ||||
| (Being interest on capital is less charged on capital , 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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