Question 69 Chapter 2 of Class 12 Part – 1
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: –
|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|
|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)|
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Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution