Question 90 Chapter 2 of +2-A - T.S. Grewal 12 Class Part

Question 90 Chapter 2 of +2-A

Table of Contents

90. Ajay, Binay and Chetan were partners sharing profits in the ratio of 3 : 3: 2. The Partnership
The deed provided for the following:

Salary of 2,000 per quarter to Ajay and Binay.
Chetan was entitled to a commission of 8,000
Binay was guaranteed a profit of 50,000 p.a.
The profit of the firm for the year ended 31st March 2015 was 1,50,000 which was distributed among Ajay, Binay and Chetan in the ratio of 2 : 2: 1, without taking into consideration the
provisions of Partnership Deed. Pass necessary rectifying entry for the above adjustments in the books of the firm. Show your workings clearly.

The solution of Question 90 Chapter 2 of +2-A:

Date	Particulars		L.F.	Debit	Credit
	Ajay’s Capital A/c *1	Dr		6,400
	Binay’s Capital A/c *1	Dr		2,000
	To Chetan’s Capital A/c				8,400
	(Being adjustment made for deficiency of R’s Capital)

Balance Sheet (for the year ended 31st March 2019)
Liabilities		Amount	Assets	Amount
To Salary			By Profit and Loss A/c	1,50,000
Ajay’s Capital A/c	8,000
Binay’s Capital A/c	8,000	16,000
To Commission to Chetan		8,000
*To Profit Transferred to 2**
Ajay’s Capital A/c	45,600
Binay’s Capital A/c	50,000
Chetan’s Capital A/c	30,400	1,26,000
		1,50,000		1,50,000

Statement Showing Adjustment of Profit required
Particulars	Ajay	Binay	Chetan	Total
Salary to be paid	8,000	8,000	–	16,000
Add: Commission to be paid	–	–	8,000	8,000
Add: Profit to be Credited	45,600	50,000	30,400	1,26,000
Total Amount to be credited	53,600	58,000	38,400	1,26,000
Less: Profit Already credited (2:2:1)	60,000	60,000	30,000	1,50,000
	– 6,400	– 2,000	8,400	–
	Ajay get extra so we have to debit his capital a/c with difference amount	Binay get extra so we have to debit his capital a/c with difference amount	Chetan get less amount, so we have to credit his capital a/c with difference amount

Profit Already credited

Profit of the year = 1,50,000
Profit-sharing Ratio = 2 : 2 : 1

Ajay’s Share of Profit	1,50,000	X	2
			5

Ajay’s Share of Profit = 60,000

Binay’s Share of Profit	1,50,000	X	2
			5

Binay’s Share of Profit = 60,000

Chetan’s Share of Profit	1,50,000	X	1
			5

Chetan’s Share of Profit = 30,000

Also, Check out the solved question of previous Chapters: –

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Chapter No. 1 – Financial Statements of a Company
Chapter No. 2 – Financial Statement Analysis
Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
Chapter No. 4 – Accounting Ratios
Chapter No. 5 – Cash Flow Statement