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

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

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Question 69 Chapter 2 of Class 12 Part – 1

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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.)15,00015,00015,00045,000
Amount that should have been credited    
C’s salary (1,500×12)18,00018,000
Interest on Capital2,5001,25012505,000
Share of Profit11,0005,5005,50022,000
(Cr.)13,5006,75024,75045,000
Net Effect1,500(Dr.)8,250 (Dr.)9,750 (Cr.)NIL

Adjustment Journal Entry

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

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I (Introduction)

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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)

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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

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Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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