Question 72 Chapter 2 of Class 12 Part – 1 VK Publication

Question 72 Chapter 2 of Class 12 Part - 1 VK Publication

Question 72 Chapter 2 of Class 12 Part – 1

72. Cand D are partners sharing profits and losses in the ratio of 3:1. Following is the Balance Sheet of the firm as at 31st March, 2017:

 Liabilities Rs. Assets Rs. Sundry creditors 20,000 Fixed Assets 1,02,000 C’s Capital A/c 90,000 Currents Assets 20,000 D’s Capital A/c 30,000 Drawings : C 12,000 D 6,000 18,000 1,40,000 1,40,000

Profit for the year ended 31st March, 2017 was Rs. 24,000 divided between the partners in their profit sharing ratio, but interest on capital at 5% pa. and on drawings at 6 p.a. was inadvertently ignored. Give the necessary adjustment entry for the adjustment of interest. Interest on drawings may be calculated on an average basis for 6 months.

The solution of Question 72 Chapter 2 of Class 12 Part – 1: –

Statement showing calculation of opening capital

 Particulars C Rs. D Rs. Capital at the end 90,000 30,000 Less: Share of Profit 18,000 6,000 Capitals in the beggining 72,000 24,000

In the given problem, drawing have not been added to closing capitals as they were never deducted from the opening capitals
Interest on Capitals:
C = 72,000 ×5/100= Rs. 3,600
D = 24,000 ×5/100= Rs. 1,200
Interest on Drawings:
C = 12,000 ×6/100×6/12 = Rs. 360
D = 6,000 ×6/100×6/12 = Rs. 180

 Particulars C Rs. D Rs. Total Rs. Interest on Capital A/c 3,600 1,200 4,800 Less: Interest on Drawings 360 180 540 (Cr.) (A) 3,240 1,020 4,260 Less: Net loss of the firm in the ratio of 3:2 (Dr.) (B) 3,195 1,065 4,260 Net Effect (A-B) ( Dr.) 45 (Cr.) 45 NIL

 Date Particular L . F Dr. ₹ Cr. ₹ C’s Capital A/c Dr. 45 To D’s Capital A/c 45 (Being partners’ capital account adjusted for interest on capital and drawings )

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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)

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