# 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

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

 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

 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)

## 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