Question 66:
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.
Question 67
On 31st March, 2026, after the closing of the accounts, the Capital Accounts of P, Q and R stood in the books of the firm at ₹ 40,000; ₹ 30,000 and ₹ 20,000 respectively. Subsequently, it was noticed that interest on capital @ 5% had been omitted. Profit for the year ended 31st March, 2026 was ₹ 60,000 and the partners' drawings had been P – ₹ 10,000, Q – ₹ 7,500 and R – ₹ 4,500. Profit-sharing ratio of P, Q and R is 3 : 2 : 1.
Give necessary adjustment entry.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( ₹) |
Credit ( ₹) |
|
|
2026 Mar.31 |
|
|
|
|
|
|
|
To Q’s Capital A/c |
|
|
8 |
|
|
|
To R’s Capital A/c |
|
|
292 |
|
|
|
(Interest on Capital was omitted, now adjusted) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN 1Calculation of Capital at the beginning (as on April 01, 2025)
|
Particulars |
P |
Q |
R |
|
Capital as on March 31, 2026 Closing) |
40,000 |
30,000 |
20,000 |
|
Add: Drawings |
10,000 |
7,500 |
4,500 |
|
Less: Profit ₹ 60,000 (3:2:1) |
(30,000) |
(20,000) |
(10,000) |
|
Capital as on April 01, 2025 (Opening) |
20,000 |
17,500 |
14,500 |
|
|
|
|
|
WN 2Calculation of Interest on Capital
Interest on P’s capital=20,000×5/100=1000
Interest on Q’s capital=17,500×5/100=875
Interest on R’s capital=14,500×5/100=725
WN 3
|
Statement Showing Adjustment |
||||
|
Particulars |
P |
Q |
R |
Total |
|
Interest on Capital (to be credited) |
1,000 |
875 |
725 |
2,600 |
|
For sharing above Loss (3:2:1) |
(1,300) |
(867) |
(433) |
(2,600) |
|
Net Effect |
(300) |
8 |
292 |
NIL |
|
|
|
|
|
|
Question 68
Mohan, Vijay and Anil are partners, the balances of
their Capital Accounts being ₹ 30,000, ₹ 25,000 and ₹
20,000 respectively. In arriving at these amounts profit for the year ended
31st March, 2026, ₹ 24,000 had already been credited to partners in the
proportion in which they shared profits. Their drawings were ₹ 5,000
(Mohan), ₹ 4,000 (Vijay) and ₹ 3,000 (Anil) during the year.
Subsequently, the following omissions were noticed and it was decided to
rectify the errors:
(a) Interest on capital @ 10% p.a.
(b) Interest on drawings: Mohan ₹ 250, Vijay ₹ 200 and Anil ₹
150.
Make necessary corrections through a Journal entry and show your workings
clearly.
Answer:
|
|
Journal |
||||
|
Date |
Particulars |
L. F. |
Debit ( ₹) |
Credit ( ₹) |
|
|
2026 March 31 |
|
|
|
|
|
|
|
To Mohan’s Capital A/c |
|
|
550 |
|
|
|
(Interest on capital and interest on drawings was omitted, now adjusted) |
|
|
|
|
Working Notes:
WN 1Calculation of Capital at the beginning
|
Particulars |
Mohan |
Vijay |
Anil |
Total |
|
Capital at the end |
30,000 |
25,000 |
20,000 |
75,000 |
|
Add: Drawings |
5,000 |
4,000 |
3,000 |
12,000 |
|
Less: Profit (1:1:1) |
(8,000) |
(8,000) |
(8,000) |
(24,000) |
|
Capital in the beginning |
27,000 |
21,000 |
15,000 |
63,000 |
|
|
|
|
|
|
WN 2Calculation of Interest on Capital
Interest on Mohan’s capital=27,000×10/100=2,700
Interest on Vijay’s capital=21,000×10/100=2,100
Interest on Anil’s capital=25,000×10/100=2,500
WN 3
|
Statement Showing Adjustment |
||||
|
|
Mohan |
Vijay |
Anil |
Total |
|
Interest on Capital to be credited |
2,700 |
2,100 |
1,500 |
6,300 |
|
Less: Interest on Drawings |
(250) |
(200) |
(150) |
(600) |
|
Right Distribution of ₹ 5,700 |
2,450 |
1,900 |
1,350 |
5,700 |
|
Wrong Distribution of ₹ 5,700 (1 : 1 : 1) |
(1,900) |
(1,900) |
(1,900) |
(5,700) |
|
Net Effect |
550 |
Nil |
(550) |
NIL |
|
|
|
|
|
|
WN 4Calculation of Final Profit Share of Partners
Total Corrected Profit Available for Distribution = Profit - Interest on Capital + Interest on Drawings = 24,000 – 6,300 + 600 = ₹ 18,300
Corrected profit of Mohan, Vijay, Anil each =18,300×1/3=6,100
Question 69:
Mudit, Sudhir and Uday are partners in a firm
sharing profits in the ratio of 3 : 1 : 1. Their fixed capital balances are ₹
4,00,000, ₹ 1,60,000 and ₹ 1,20,000 respectively. Net profit for
the year ended 31st March, 2018 distributed amongst the partners was ₹
1,00,000, without taking into account the following adjustments:
(a) Interest on capitals @ 2.5% p.a.;
(b) Salary to Mudit ₹ 18,000 p.a. and commission to Uday ₹ 12,000.
(c) Mudit was allowed a commission of 6% of divisible profit after charging
such commission.
Pass a rectifying Journal entry in the books of the firm. Show workings
clearly.
(CBSE Sample paper 2019)
Answer:
|
In the books of Mudit, Sudhir and Uday Journal |
||||||
|
Date |
Particulars |
|
|
L.F. |
Debit ( ₹) |
Credit ( ₹) |
|
2025 |
|
|
|
|
|
|
|
March 31 |
Sudhir’s Current A/c |
Dr. |
|
6,000 |
|
|
|
|
To Mudit’s Current A/c |
|
|
|
1,000 |
|
|
|
To Uday’s Current A/c |
|
|
|
5,000 |
|
|
|
(Being adjustment entry passed for rectification of errors) |
|
|
|
|
|
Working Notes:
|
Table Showing Adjustment |
||||||||
|
Particulars |
Mudit’s Current A/c |
Sudhir’s Current A/c |
Uday’s Current A/c |
Firm |
||||
|
|
Dr. (₹) |
Cr. (₹) |
Dr. (₹) |
Cr. (₹) |
Dr. (₹) |
Cr. (₹) |
Dr. (₹) |
Cr. (₹) |
|
Profits wrongly Distributed (Dr.) |
60,000 |
|
20,000 |
|
20,000 |
|
|
1,00,000 |
|
Interest on Capital to be |
|
|
|
|
|
|
|
|
|
Provided (Cr.) |
|
10,000 |
|
4,000 |
|
3,000 |
17,000 |
|
|
Salary to be provided (Cr.) |
|
18,000 |
|
|
|
|
18,000 |
|
|
Commission to be provided (Cr.) |
|
3,000 |
|
|
|
12,000 |
15,000 |
|
|
Profit correctly distributed (Cr.) |
|
30,000 |
|
10,000 |
|
10,000 |
50,000 |
|
|
Balance to be adjusted |
1,000(Cr.) |
6,000(Dr.) |
5,000(Cr.) |
NIL |
||||
|
Divisible Profits |
= |
Profits before appropriation – (Interest on Capital + Salary + Uday’s Commission) |
|
|
= |
₹ 1,00,000 – (17,000 + 18,000 + 12,000) = ₹ 53,000 |
|
Mudit’s Commission |
= |
(Divisible Profit × Rate/ 100 + Rate) |
|
|
= |
₹ (53,000 × 6/106) = ₹ 3,000 |
Question 70:
Piya and Bina are partners in a firm sharing profits
and losses in the ratio of 3 : 2. Following was the Balance Sheet of the firm
as on 31st March, 2016:
|
Liabilities |
₹ |
Assets |
₹ |
|
|
Capitals: |
|
Sundry Assets |
1,20,000 |
|
|
Piya |
80,000 |
|
|
|
|
Bina |
40,000 |
1,20,000 |
|
|
|
|
1,20,000 |
|
1,20,000 |
|
|
|
|
|
|
|
The profits ₹ 30,000 for the year ended 31st March, 2016 were divided
between the partners without allowing interest on capital @ 12% p.a. salary to
Piya @ ₹ 1,000 per month. During the year Piyawithdrew ₹ 8,000
and Bina withdrew ₹ 4,000. Showing your working notes clearly, pass the
necessary rectifying entry.
Answer:
|
Journal |
||||
|
Particular |
L.F. |
Debit (₹) |
Credit (₹) |
|
|
Bina’s Capital A/c |
Dr. |
|
5,856 |
|
|
To Piya’s Capital A/c |
|
|
5,856 |
|
|
(Adjustment made) |
|
|
|
|
|
|
|
|
|
|
|
Particular |
Piya |
Bina |
Total |
|
Interest on Capital @ 12% p.a. |
8,400 |
3,840 |
(12,240) |
|
Salary |
12,000 |
– |
(12,000) |
|
Profit (30,000 – 12,240 –12,000) |
3,456 |
2,304 |
5,760 |
|
Right Share |
23,856 |
6,144 |
(30,000) |
|
Wrong Share |
(18,000) |
(12,000) |
30,000 |
|
Net Effect |
5,856 (Cr.) |
5,856 (Dr.) |
Nil |
|
|
|
|
|
Working Notes:
|
Particular |
Piya |
Bina |
|
Closing Capitals |
80,000 |
40,000 |
|
Add: Drawings |
8,000 |
4,000 |
|
Less: Profit Share |
18,000 |
12,000 |
|
Opening Capital |
70,000 |
32,000 |
Ts Grewal Solution 2026-2027
Click below for more Questions
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
Question No. 46 To 50
Question No. 51 To 55
Question No. 56 To 60
Question No. 61 To 65
Question No. 66 To 70
Question No. 71 To 75
Question No. 76 To 80
Question No. 81 To 85
Question No. 86 To 90
Question No. 91 And 92