Question 74 Chapter 2 of Class 12 Part – 1
74. After adjustment of net profit and drawings in the year 2014-15 capital accounts of Bansal, Sharma and Gupta showed the balance as Rs. 16,000: Rs. 12,000 and Rs. 8,000 respectively. Later on it was discovered that interest on capital @ 6% p.a. and interest on drawings had not been taken into account. Interest on drawings was Rs. 210, Rs. 120; and Rs. 90 respectively and drawings during the year were Bansal Rs. 5,000, Sharma Rs. 4,000 and Gupta Rs. 2,000. The net profit for the year was 24,000 which was distributed amongst the partners in proportion of 3:2:1. In order to adjust Partners Capital Accounts on 1st April, 2015, give the necessa journal entry by showing necessary calculations.
The solution of Question 74 Chapter 2 of Class 12 Part – 1: –
Statement showing calculation of opening capital
| Particulars |
Bansal Rs. |
Sharma Rs. | Gupta Rs. |
| Capital at the end | 16,000 | 12,000 | 8,000 |
| Add: Partners’ Drawing during the year | 5,000 | 4,000 | 2,000 |
| Less: Share of Profit | (12,000) | (8,000) | (4,000) |
| Capitals in the beginning of the year | 9,000 | 8,000 | 6,000 |
Interest on Capitals:
Bansal = 9,000 ×6/100= Rs. 540
Sharma = 8,000 ×6/100 = Rs. 480
Gupta = 6,000 ×6/100 = Rs. 360
Table Adjustment
| Particulars |
Bansal Rs. |
Sharma Rs. |
Gupta Rs. |
Total Rs. |
| Interest on Capital A/c | 540 | 480 | 3600 | 13,80 |
| Less: Interest on Drawings | 210 | 120 | 90 | 420 |
| Loss to the firm due to adjustments (Cr.) (A) | 330 | 360 | 270 | 960 |
| Division of loss of the firm in the ratio of 3:2:1 (Dr.) (B) | 480 | 320 | 160 | 960 |
| Net Effect (A-B) | (Dr.) 150 | ( Cr.) 40 | (Cr.) 110 | NIL |
Adjustment Journal Entry
| Date | Particular | L . F |
Dr. ₹ | Cr. ₹ | |
| Bansal’s Capital A/c | Dr. | 150 | |||
| To Sharma’s Capital A/c | 40 | ||||
| To Gupta’s Capital A/c | 110 | ||||
| (Being partners’ capital account adjusted ) |
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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)
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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
Chapter No. 4 – Ratio Analysis
Chapter No. 5 – Cash Flow Statement
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