Question 69 Chapter 2 of Class 12 Part - 1 VK Publication

Question 69 Chapter 2 of Class 12 Part – 1

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The solution of Question 69 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

69. A, B and C were partners in a firm. On 1st April, 2017 their capitals stood at Rs. 50,000; Rs. 25,000 and Rs. 25,000 respectively. As per the provisions of the partnership deed:
(a) C was entitled for a salary of Rs
1,500 per month.
(b) Partners were entitled to interest on capital @5% pa.
(c) Profits were to be shared in the ratio of capitals.
The net profit for the year ending on 31st March, 2018 of Rs. 45,000 was divided equally without providing for the above terms.
Pass an adjustment entry to rectify the above error.

The solution of Question 69 Chapter 2 of Class 12 Part – 1: –

Table Adjustment

Particulars	A Rs.	B Rs.	C Rs.	Total Rs.
Amount that has already been credited ( Dr.)	15,000	15,000	15,000	45,000
Amount that should have been credited
C’s salary (1,500×12)	–	–	18,000	18,000
Interest on Capital	2,500	1,250	1250	5,000
Share of Profit	11,000	5,500	5,500	22,000
(Cr.)	13,500	6,750	24,750	45,000
Net Effect	1,500(Dr.)	8,250 (Dr.)	9,750 (Cr.)	NIL

Adjustment Journal Entry

Date	Particular		L . F	Dr. ₹	Cr. ₹
	A’s Capital A/c	Dr.		1,500
	B’s Capital A/c	Dr.		8,250
	To C’s Capital A/c				9,750
	(Being partners’ capital account adjusted)