# Question 70 Chapter 2 of Class 12 Part – 1 VK Publication

Question 70 Chapter 2 of Class 12 Part - 1 VK Publication

Question 70 Chapter 2 of Class 12 Part – 1

70. Partners X, Y and Z have omitted interest on capitals for three years ended 31st March, 2017. Their fixed capitals on which interest is based throughout were: X Rs. 1,00,000; Y Rs. 60,000, and Z Rs. 40,000. Interest is to be allowed at 5% per annum. Their profit sharing ratios were: 2013-14-1:2:2; 2014-15-3:1:1; 2015-16-4:5:1. Give the ne adjustment entry.

## The solution of Question 70 Chapter 2 of Class 12 Part – 1: –

 Total Interest for 3 years Rs. On X’s Capital 15,000 On Y’s Capital 9,000 On Z’s Capital 6,000 30,000

Total Interest for a year = 5,000 (X) + 3,000(Y) + 2,000(Z) = Rs. 10,000

 Particulars X Rs. Y Rs. Z Rs. Total Rs. Total Interest on Capitals payable @5% p.a for 3 years (Cr.) (A) 15,000 9,000 6,000 30,000 Profit already distributed: 2013-14 – Rs. 10,000 in 1:2:2 2,000 4,000 4,000 10,000 2014-15 – Rs. 10,000 in 3:1:1 6,000 2,000 2,000 10,000 2015-16 – Rs. 10,000 in 4:5:1 4,000 5,000 1,000 10,000 (B) 12,000 11,000 7,000 30,000 Net Effect (A-B) 3,000(Cr.) 2,000 (Dr.) 1,000 (Dr.) NIL

 Date Particular L . F Dr. ₹ Cr. ₹ Y’s Current A/c Dr. 2,000 Z’s Current A/c Dr. 1,000 To X’s Current A/c 3,000 (Being partners’ current account adjusted for interest on capital)

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

Chapter No. 1 – Accounting Not for Profit Organisations

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

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)

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