Question 71:
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 2025)
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 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₹20,000 drawn at the end of each month, Bobby- ₹50,000 drawn at the beginning of every half year and Vineet- ₹1,00,000 withdrawn on 31st October, 2017.The net profit for the year ended 31st March, 2018 was ₹1,50,000.The profit-sharing ratio was 2 :2 : 1.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, 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 74: Pranav, Karan and Rahim were partners sharing profits in the ratio of 3:2:1. Their capitals were 5,00,000, 3,00,000 and 2,00,000 respectively as on 1st April, 2025. According to the partnership deed, they were entitled to an interest on capital at 10% p.a. Forthe year ended 31st March, 2026, profit of 78,000 was distributed among the partners without providing for interest on capitals.
Pass the necessary adjusting entry and show the working clearly.
Answer:
|
JOURNAL |
|||||
|
Date |
Particulars |
|
LF |
Dr. (₹) |
Cr. (₹) |
|
2026 |
Rahim's capital A/c |
Dr. |
|
3,000 |
|
|
31st March |
To Karan’s capital A/c |
|
|
|
3,000 |
|
|
(Being Interest on capital was omitted now adjusted) |
|
|
|
|
|
|
|
|
|
|
|
1. Interest on capital: Pranav - 50000; Karan - 30000; Rahim - 20000.
Total interest on capital was to be credited = 1,00,000, Which is more than the profit 78,000.
2. Profit is to be distributed in the ratio of interest on capital which is 5:3:2
Pranav =78,000 × 5/10 = 39,000
Karan=78,000 × 3 = 23,400
Rahim =78,000 × 2 / 10 = 15,600
3. Wrongly distributed as follow in profit sharing ratio 3:2:1
Pranav =78,000×3/6= 39,000
Karan =78,000×2/6= 26,000
Rahim =78,000×1/6= 13,000
4. Calculation of amount to be adjusted
|
|
Pranav |
Karan |
Rahim |
|
Amount to be credited |
39,000 |
23,400 |
15,600 |
|
Wrongly Amount to be credited |
39,000 |
26,000 |
13,000 |
|
|
nil |
2,600 |
2,600 |
Guarantee of Minimum Profit to a Partner
Question 75:
A, B and C were in partnership sharing profits and losses in the ratio of 4 :2 : 1. It was provided that C’s share in profit for a year would not be less than ₹75,000. Profit for the year ended 31st March, 2026 amounted to ₹3,15,000. You are required to show the appropriation among the partners. The Profit and Loss Appropriation Account is not required.
Answer;
Working notes;
|
Profit and loss appropriation account for year ended 31st March, 2026
|
|||
|
Particulars |
₹ |
Particulars |
₹ |
|
To Profit A- 1,60,000 B- 80,000 C- 75,000 |
3,15,000 |
By net profit |
3,15,000 |
|
|
3,15,000 |
|
3,15,000 |
Note: initial profit distributed 30,000 in 4;2 or 2:1 in the absence of any information in the question No profit and loss a/c is required we can appropriate as below;
Appropriation of profit
|
A- 1,80,000-20,000 =1,60,000 B- 90,000-10,000 = 80,000 C- 45,000+30,000 = 75,000
|
|
3,15,000 |
Ts Grewal Solution 2026-2027
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Class 12 | Volume I
Chapter 1 – Accounting For Partnership Firms Fundamentals
Question No. 1 To 5
Question No. 6 To 10
Question No. 11 To 15
Question No. 16 To 20
Question No. 21 To 25
Question No. 26 To 30
Question No. 31 To 35
Question No. 36 To 40
Question No. 41 To 45
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