Question 73 Chapter 2 of Class 12 Part - 1 VK Publication

Question 73 Chapter 2 of Class 12 Part – 1

Table of Contents

The solution of Question 73 Chapter 2 of Class 12 Part – 1: –

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

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

73. The firm of Tuli, Puri and Suri, who have been sharing profits in the ratio of 2:2:1, have existed for some years. Suri wants that he should get equal share in the profits with Tuli and Puri and he further wishes that the change in the profit-sharing ratio should come into effect retrospectively for the first three years. Tuli and Puri have agreement on this account.

The profits for the last three years were:

2014-15	Rs. 66,000
2015-16	Rs. 72,000
2016-17	Rs. 87,000

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Show adjustment of profits by means of a single adjustment journal entry.

The solution of Question 73 Chapter 2 of Class 12 Part – 1: –

Total Profit for last three years = Rs. 2,25,000

Statement showing Adjustment Table

Particulars	Tuli rs.	Puri Rs.	Advertisement-X Suri Rs.	Total Rs.
(i) Amount which should have been credited as profit in equal ratio	75,000	75,000	75,000	2,25,000
(i) Amount which should was actually credited as profit in 2:2:1 ratio	90,000	90,000	45,000	2,25,00
Difference between (i) and (ii)	(Dr.) 15,000	(Dr.) 15,000	(Cr.) 30,000
Net Effect	( Excess)	( Excess)	(Shortage)	NIL

Adjustment Journal Entry

Date	Particular		L . F	Dr. ₹	Cr. ₹
	TULI’s Capital A/c	Dr.		15,000
	PURI’s Capital A/c	Dr.		15,000
	To SURI’s Capital A/c				30,000
	(Being adjustment entry made )