# Question 69 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 69 Chapter 2 of +2-A

69. Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3 : 2. The following
information is of the firm as on 31st March 2019:

 Liabilities Rs Assets Rs Mannu’s Capital 30,000 Drawings: Shristhi’s Capital 10,000 40,000 Mannu 4,000 Shristhi 2,000 6,000 Sundry Assets 34,000 40,000 40,000

Profit for the year ended 31st March 2019 was 5,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently omitted.
Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.

The solution of Question 69 Chapter 2 of +2-A

:

 Date Particulars L.F. Debit Credit Shrishti’s Capital A/c Dr 288 To Mannu’s Capital A/c 288 (Being adjustment made)

Working Note: –

 Statement Showing Adjustment of Profit required Particulars Mannu Shristhi Total Actual Amount of Interest on Capital @5% p.a. *2 1,500 500 2,000 Less: – Interest on Drawing *3 120 60 180 Actual Amount to be credited 1,380 440 1,820 Less: wrongly Amount credited in Profit sharing ratio i.e. 3:2 1,092 728 1,820 288 -288 – Mannu get less amount, so we have to credited his capital a/c with difference amount Shristhi get extra so we have to debit his capital a/c with difference amount

*1 Calculation of Actual Amount of Interest on A’s, B’s, & C’s Capital
Interest on Capital = Opening Capital X Rate of Interest

 Interest on Mannu’s Capital = 30,000 X 5 100

Interest on Mannu’s Capital = 1,500/-

 Interest on Shristhi’s Capital = 10,000 X 5 100

Interest on Shristhi’s Capital = 500/-

*3 Calculation of Interest on Mannu’s & Shristhi’s Drawing

 Interest on Drawing = Drawing X Rate of Interest X Period Period = During the year = 6 Months

 Interest on Mannu’s Drawing = 4,000 X 6 X 6 100 12

Interest on Mannu’s Drawing = 120/-

 Interest on Shristhi’s Drawing = 2,000 X 6 X 6 100 12

Interest on Shristhi’s Drawing = 60/-

Also, Check out the solved question of previous Chapters: –

### T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

### T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

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