Question 87 Chapter 2 of Class 12 Part – 1
87. The partners of a firm distributed the profits for the year ended 31st March, 2016, Rs. 1,20,000 in the ratio of 2:2:1 without providing for the following adjustments:
(i) A and B were entitled to a salary of Rs. 1,500 each per quarter.
(ii)C was entitled to a commission of Rs. 6,000.
(iii) A and C had guaranteed a minimum profit of Rs. 48,000 p.a. to B.
(iv) Profits were to be shared in the ratio of 4:3:2
Pass necessary adjustment entry for the above adjustments in the books of the firm.
The solution of Question 87 Chapter 2 of Class 12 Part – 1: –
Table Adjustment
| Particulars |
A Rs. |
B Rs. |
C Rs. | Total Rs. |
| Salary (Cr.) | 6,000 | 6,000 | – | 12,000 |
| Commission (Cr.) | – | – | 6,000 | 6,000 |
| Profit Guaranteed to B (Cr.) | – | 48,000 | – | 48,000 |
| Remaining Profit , will be divided between A and C in ratio 4:2 (Cr.) | 36,000 | – | 18,000 | 54,000 |
| (1,20,000-12,000-6,000-48,000=54,000) | ||||
| 42,000 | 50,000 | 24,000 | 1,20,000 | |
| Less: Profit already distributed | ||||
| (1,20,000 in 2:2:1) (Dr.) | 48,000 | 48,000 | 24,000 | 1,20,000 |
| Net Effect | ( Dr.) 6,000 | (Cr.) 6,000 | NIL | NIL |
Adjustment Journal Entry
| Date | Particular | L . F |
Dr. ₹ | Cr. ₹ | |
| 2016 Mar. 31 |
A’s Capital A/c | Dr. | 6,000 | ||
| To B’s Capital A/c | 6,000 | ||||
| (Being adjustment entry made ) |
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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)
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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
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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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