Question 90 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 90 Chapter 2 of +2-A

Question 90 Chapter 2 of +2-A

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

  1. Salary of 2,000 per quarter to Ajay and Binay.
  2. Chetan was entitled to a commission of 8,000
  3. 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: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • 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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 90 Chapter 2 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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