DK Goel Solutions Q 49 Chapter 1 Accounting for Partnership Firms-Fundamentals Class 12 CBSE [2023-24]

(A) On 1st April, 2022 the Capitals of A and B were ₹ 4,00,000 and ₹ 2,00,000 respectively. They divided profits in their capital ratio. Profits for the year ended 31st March, 2023 were ₹ 3,00,000 which have been duly distributed among the partners, but the following transactions were not passed through the books :—

1. (a) Interest on Capitals @ 12% p.a.
2. (b) Interest on Drawings A ₹ 12,000; B ₹ 10,000.
3. (c) Commission due to B ₹ 20,000 on a special transaction.
4. (d) A is to be paid a salary of ₹ 50,000.

You are required to pass a journal entry on 10th April, 2023 which will not affect the P & L A/c of the firm and at the same time will rectify the errors.

(B) Kumar and Raja were partners in a firm sharing profits in the ratio of 7 : 3. Their fixed capitals were : Kumar ₹ 9,00,000 and Raja ₹ 4,00,000. The partnership deed provided for the following but the profit for the year was distributed without providing for :

1. (i) Interest on capital @ 9% per annum.
2. (ii) Kumar’s salary ₹ 50,000 per year and Raja’s salary ₹ 3,000 per month.

The profit for the year ended 31.3.2023 was ₹ 2,78,000.

Pass the adjustment entry.