DK Goel Solutions Q 60 Chapter 1 Accounting for Partnership Firms-Fundamentals Class 12 CBSE [2023-24]

(A) Mohan, Vijay and Anil are partners, their capitals being ₹ 30,000, ₹ 25,000 and ₹ 20,000 respectively. In arriving at these figures, the drawings and profits for the year ended, 31st March, 2021 ₹ 24,000 has already been credited to the partners in the proportion in which they share profits. Their drawings were ₹ 5,000 (Mohan); ₹ 4,000 (Vijay) and ₹ 3,000 (Anil) for the year ending 31st March, 2021. Subsequently the following omissions were noticed and it was decided to bring them into Account.

1. (i) Interest on Capital at 10% p.a.
2. (ii) Interest on Drawings Mohan ₹ 250, Vijay ₹ 200 and Anil ₹ 150.

Make the necessary journal entry and prepare Capital Accounts of Partner’s.

(B) The capitals of A, B and C stood at ₹ 20,000, ₹ 15,000 and ₹ 10,000 respectively after the necessary adjustment in respect of drawings and net profits. Subsequently, it was discovered that interest on capital at 10% p.a. and interest on drawings ₹ 130, ₹ 90 and ₹ 50 respectively have been ignored. Profit of the year already adjusted was ₹ 10,000. Drawings of the partners were ₹ 1,000, ₹ 800 and ₹ 500 respectively. They share profits and losses in the ratio of 2 : 1 : 1. Give necessary journal entry to rectify the accounts.

(C) A and B are partners in a business sharing profits and losses in the ratio of 3 : 2. Their capitals on 31st March, 2021, after the adjustment of net profits and drawings amounted to ₹ 2,00,000 and ₹ 1,50,000 respectively. Later on, it was discovered that interest on Capital at 8% per annum, as provided for in the partnership deed, had not been credited to the partner’s capital accounts before the distribution of profits. The year’s net profit amounted to ₹ 75,000 and the partners had withdrawn ₹ 24,000 each. Instead of altering the signed balance sheet, it was decided to make an adjustment entry at the beginning of the new year crediting or debiting the Partner’s Accounts. Give the necessary journal entry as also a statement of details arriving at the amount of adjusting entry.