Question
71:
Mannu and Shristhi are partners in a firm sharing profit in the ratio
of 3 : 2. Following information is of the firm as on
31st March 2025:
|
Liabilities |
` |
Assets |
` |
||
|
Mannu’s Capital |
3,00,000 |
|
Drawings: |
|
|
|
Shristhi’s Capital |
1,00,000 |
4,00,000 |
Mannu |
40,000 |
|
|
|
|
Shristhi |
20,000 |
60,000 |
|
|
|
|
Other Assets |
3,40,000 |
||
|
|
4,00,000
|
|
4,00,000 |
||
|
|
|
|
|
||
Profit for the year ended 31st March,
2025 was ` 50,000 which
was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6%
p.a. on drawings was inadvertently omitted. Adjust interest on drawings on an
average basis for 6 months. Give the adjustment entry.
Answer:
Adjusting
Journal Entry
|
Date |
Particular |
L.F |
Debit |
Credit |
|
|
2025 |
Shrishti's Capital A/c |
Dr. |
|
288 |
|
|
|
To Mannu's Capital A/c |
|
|
|
288 |
|
|
(Adjustment of profit made) |
|
|
|
|
Adjustment of Profit
|
|
Mannu’s |
Shrishti |
|
Total |
|
Interest on Capital |
1,500 |
500 |
= |
2,000 |
|
Less: Interest on Drawings |
(120) |
(60) |
= |
(180) |
|
Right distribution of ` 1,820 |
1,380 |
440 |
= |
1,820 |
|
Less: Wrong distribution of ` 1,820 (3 : 2) |
(1,092) |
(728) |
= |
(1,820) |
|
Adjusted Profit |
288 |
(288) |
= |
NIL |
Question 72
On 31st
March, 2018 the balance in the Capital Accounts of Abhir,
Bobby and Vineet, after making adjustments for
profits and drawings were `8,00,000, `6,00,000 and `4,00,000 respectively.
Subsequently,
it was discovered that interest on capital and interest on drawings had been
omitted. The partners were entitled to interest on capital @ 10% p.a. and were
to be charged interest on drawings @ 6% pa. The drawings during the year were: Abhir- `20,000 drawn at the end of each month, Bobby- `50,000 drawn at the beginning of
every half year and Vineet- `1,00,000 withdrawn on 31st October,
2017.The net profit for the year ended 31st March, 2018 was `1,50,000.The profit-sharing ratio was
2 :2 : 1.
Pass
necessary adjusting entry for the above adjustments in the books of the firm.
Also, show your workings clearly.
(CBSE2019)
Answer;
|
Date
|
Particulars |
|
L.F. |
Dr.` |
Cr.
` |
|
31
March |
Bobby’s Capital
A/c To Naveen
’s Capital A/c To Qadir’s Capital
A/c (Being
omission of salary , wrong interest on capital credited , now profit
corrected) |
Dr. |
|
24,660 |
17,240 7,420 |
|
|
Total
|
|
|
24,660 |
24,660 |
Working note;
Calculation of opening Capital ;
|
Particulars |
Abhir |
Bobby |
vineet |
|
Closing capital Add; drawings Less; Profit |
8,00,000 2,40,000 60,000 |
6,00,000 1,00,000 60,000 |
4,00,000 1,00,000 30,000 |
|
Opening capital |
9,80,000 |
6,40,000 |
4,70,000 |
Calculation
of opening Drawings ;
Abhir= 20,000×12×6/100×5.5/12=6,600
Bobby= 50,000×2×6/100×9/12=4,500
Vineet = 1,00,000×6/100×5/12=2,500
|
Statement
showing Adjustments |
||||||||
|
Particulars |
A |
B |
C |
FIRM |
||||
|
Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
Dr. |
Cr. |
|
|
Interest on
capital omitted Interest on
Drawing omitted |
6,600 |
98,000 |
4,500 |
64,000 |
2,500 |
47,000 |
2,09,000 |
13,600 |
|
Net
interest omitted Net loss of
above omission |
78,160 |
91,400 |
78,160 |
59,500 |
39,090 |
44,500 |
1,95,400 |
1,95,400 |
|
Total |
78,160 |
91,400 |
74,160 |
49,500 |
37,080 |
44,500 |
1,85,400 |
1,85,400 |
|
Net effect |
|
17,240 |
24,160 |
|
|
7,420 |
|
|
Question 73:
On 31st
March, 2023, the capitals of Raghav and Diya stood at ₹ 4,00,000 and
₹ 3,00,000 respectively, after the necessary adjustment in respect of
drawings and net profit. Subsequently, it was discovered that interest on
capital @ 10% p.a. had been omitted. The Net Profit the year ended 31st March,
2023 amounted to ₹ 1,00,000.
During the
year ended 31st March, 2023, Raghav's drawings were
₹ 2,000 drawn at the beginning of each month, while Diya's
drawings were ₹ 3,000 drawn at the beginning of each quarter. Pass the
necessary adjustment entry. (CBSE 2024)
Answer:
|
Diya's Capital A/c |
Dr. |
5,600 |
|
|
to Raghavs
Capital A/c |
|
|
5,600 |
|
(Interest on capital @ 10% p.a. had been
omitted, now adjusted) |
|
|
|
Calculation of opening capital
|
|
Raghav |
Diya |
|
Closing capital |
4,00,000 |
3,00,000 |
|
Add: Drawings |
24,000 |
12,000 |
|
|
4,24,000 |
3,12,000 |
|
Less: Profit |
50,000 |
50,000 |
|
Opening
capital |
3,74,000 |
2,62,000 |
Interest on capital was to credited
Raghav = 37,400
Diya = 26,200
Adjustment Table
|
|
Raghav |
Diya |
|
|
Interest was to be credited |
37,400 |
26,200 |
63,600 |
|
Interest was credited in 1:1 |
31,800 |
31,800 |
63,600 |
|
Amount to be adjusted |
5,600 |
5,600 |
|
|
|
To be Credit |
To be Debited |
|
Question
74:
On 31st
March, 2014, the balances in the Capital Accounts of Saroj,
Mahinder and Umar after
making adjustments for profits and drawings, etc., were `
80,000, ` 60,000, ` 40,000 respectively. Subsequently,
it was discovered that the interest on capital and drawings has been omitted.
(a) The profit for the year ended 31st March, 2014 was `
80,000.
(b) During the year Saroj and Mahinder
each withdrew a sum of
`
24,000 in equal instalments in the end of each month
and Umar withdrew
` 36,000.
(c) The interest on drawings was to be charged @ 5% p.a. and interest on
capital was to be allowed @ 10% p.a.
(d) The profit-sharing ratio among partners was 4 : 3 : 1.
Showing your workings clearly, pass the necessary rectifying entry.
Answer:
|
Journal |
||||
|
Particular |
L.F. |
Debit |
Credit |
|
|
Saroj’s Capital A/c |
Dr. |
|
2,350 |
|
|
Mahinder’s Capital A/c |
Dr. |
|
1,300 |
|
|
To Umar’s
Capital A/c |
|
|
3,650 |
|
|
(Adjustment made) |
|
|
|
|
|
|
|
|
|
|
Working Notes:
|
Particular |
Saroj |
Mahinder |
Umar |
|
Closing Capitals |
80,000 |
60,000 |
40,000 |
|
Add: Drawings |
24,000 |
24,000 |
36,000 |
|
Less: Profit Share |
40,000 |
30,000 |
10,000 |
|
Opening Capital |
64,000 |
54,000 |
66,000 |
|
Particular |
Saroj |
Mahinder |
Umar |
Total |
|
Interest on Capital @ 10% p.a. |
6,400 |
5,400 |
6,600 |
(18,400) |
|
Interest on Drawings@ 5% p.a. |
(550) |
(550) |
(900) |
2,000 |
|
Profit (80,000 – 18,400 + 2,000) |
31,800 |
23,850 |
7,950 |
(63,600) |
|
Right Share |
37,650 |
28,700 |
13,650 |
(80,000) |
|
Wrong Share |
(40,000) |
(30,000) |
(10,000) |
80,000 |
|
Net Effect |
2,350
(Dr.) |
1,300 (Dr.) |
3,650 (Cr.) |
Nil |
|
|
|
|
|
|
Question
75:
Capitals of kajal, Neerav
and Alisha as on 31st March,
2025 amounted to ` 90,000, ` 3,30,000 and ` 6,60,000 respectively. Profit of ` 1,80,000 for the year ended 31st
March, 2025 was distributed in the ratio of 4 : 1 : 1 after allowing interest
on Capital @ 10% p.a. During the year, each partner withdrew `
3,60,000. The Partnership Deed was silent as to profit-sharing ratio but
provided for interest on capital @ 12%.
Pass the necessary adjustment entry showing the working clearly.
Answer:
|
In
the books of A, B and C Journal |
||||||
|
Date |
Particulars |
|
|
L.F. |
Debit ( `) |
Credit |
|
2025 Mar.31 |
|
|
|
|
|
|
|
|
To Neerav’s
Capital A/c |
|
|
|
|
30,000 |
|
|
To Alisha’s Capital A/c |
|
|
|
|
36,000 |
|
|
(Being adjustment made for interest on
capital and profits) |
|
|
|
|
|
Statement
Showing Adjustment:
|
Particulars |
Kajal’s
Capital A/c |
Neerav’s
Capital A/c |
Alisha’s
Capital A/c |
Firm |
|
|
Cr.
(₹) |
Dr.
(₹) |
Cr.
(₹) |
Dr.
(₹) |
|
Profits wrongly credited in the
ratio 4:1:1 (Dr.) |
1,20,000 |
|
30,000 |
|
|
Interest on Capital wrongly
credited @10% p.a. (Dr.) |
33,000 |
|
66,000 |
|
|
Interest on Capital to be provided
@12% p.a. (Cr.) |
|
39,600 |
|
79,200 |
|
Profits to be credited in the
ratio 1:1:1 (Cr.) |
|
46,800 |
|
46,800 |
|
Balance
to be adjusted |
66,000 (Dr.) |
36,000 (Cr.) |
36,000 (Cr.) |
NIL |
Note: Since, there is no provision of
interest on drawings in the partnership deed so we will not provide it.
Calculation
of Opening Capital of the Partners:
|
Particulars |
Kajal |
Neerav |
Alisha |
|
Closing Capital of the partners |
90,000 |
3,30,000 |
6,60,000 |
|
Add: Drawings made during the year |
3,60,000 |
3,60,000 |
3,60,000 |
|
4,50,000 |
6,90,000 |
10,20,000 |
|
|
Less: Profits for the year |
1,20,000 |
30,000 |
30,000 |
|
Opening Capital of the partners as on 1st April, 2025 |
3,30,000 |
6,60,000 |
9,90,000 |
Note: Interest on Capital is always computed
on the opening capitals