Question 66 Chapter 2 of Class 12 Part - 1 VK Publication

Question 66 Chapter 2 of Class 12 Part – 1

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The solution of Question 66 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

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)