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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 VK Publication

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Question 70 Chapter 2 of Class 12 Part – 1

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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 yearsRs.
On X’s Capital15,000
On Y’s Capital9,000
On Z’s Capital6,000
 30,000

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

Table Adjustment 

Particulars 

X Rs.

 Y Rs. 

Z Rs.Total Rs.
Total Interest on Capitals payable @5% p.a for 3 years (Cr.) (A)15,0009,0006,00030,000
Profit already distributed:    
2013-14 – Rs. 10,000 in 1:2:22,0004,0004,00010,000
2014-15 – Rs. 10,000 in 3:1:16,0002,0002,00010,000
2015-16 – Rs. 10,000 in 4:5:14,0005,0001,00010,000
(B)12,00011,0007,00030,000
Net Effect (A-B)3,000(Cr.)2,000 (Dr.)1,000 (Dr.)NIL

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Adjustment Journal Entry

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

 

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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

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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)

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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

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Chapter No. 4 – Ratio Analysis

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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