Question 75 Chapter 2 of Class 12 Part - 1 VK Publication

Question 75 Chapter 2 of Class 12 Part – 1

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The solution of Question 75 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

75. A. B and C were partners in a firm. On 1st April, 2012 their capitals stood as Rs. 5,00,000 Rs. 2,50,000 and Rs. 2,50,000 respectively. As per provisions of the partnership deed:
(i) C was entitled for a salary of Rs. 5,000 per month.
(ii) A was entitled for a commission of Rs. 80,000 p.a.
(iii) Partners were entitled to interest on capital @ 6% p.a.
(iv) Partners will share profits in the ratio of capitals,
Net profit for the year ended 31st March, 2013, was Rs. 3,00,000 which was distributed equally, without taking into consideration the above provisions.
Showing your workings clearly, pass necessary adjustment entry for the above.

The solution of Question 75 Chapter 2 of Class 12 Part – 1: –

Adjustment Journal Entry

Date	Particular		L . F	Dr. ₹	Cr. ₹
2013	B’s Capital A/c	Dr.		60,000
April 1	To A’s Capital A/c				60,000
	(Being adjustment entry made)

Working Note:

Table Showing the Adjustment to be made

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Particulars	A Rs.	B Rs.	C Rs.
i. Profit already wrongly credited (equally) (Dr.)	1,00,000	1,00,000	1,00,000
ii. Amount which should have been credited: (Cr.)
Salary	–	–	60,000
Commission	80,000	–	–
Interest on Capital	30,000	15,000	15,000
Net Profit Distributed [2:1:1] [ Profit- salary – commission- Interest on capital]	50,000	25,000	25,000
	1,60,000	40,000	1,00,000
iii. Difference (i-ii)	(Cr.) 60,000	( Dr.) 60,000	NIL