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Question 74 Chapter 2 of Class 12 Part – 1 VK Publication

Question 74 Chapter 2 of Class 12 Part - 1 VK Publication
Question 74 Chapter 2 of Class 12 Part - 1 VK Publication

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Question 74 Chapter 2 of Class 12 Part – 1

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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 end16,00012,0008,000
Add: Partners’ Drawing during the year5,0004,0002,000
Less: Share of Profit(12,000)(8,000)(4,000)
Capitals in the beginning of the year9,0008,0006,000

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/c540480360013,80
Less: Interest on Drawings21012090420
Loss to the firm due to adjustments (Cr.) (A)330360270960
Division of loss of the firm in the ratio of 3:2:1 (Dr.) (B)480320160960
Net Effect (A-B)(Dr.) 150( Cr.) 40(Cr.) 110NIL

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Adjustment Journal Entry

Date Particular L . F
 
Dr. ₹Cr. ₹
 Bansal’s Capital A/cDr. 150 
 To Sharma’s Capital A/c   40
 To Gupta’s Capital A/c   110
 (Being partners’ capital account adjusted )    

 

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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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