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Accountancy · 2024 · 3 marks
Accounting for Partnership: Basic ConceptsMaintenance of Capital Accounts of Partners3 marksshort answer
CBSE 2024 · Region 1 · Set 2 · Q19
Mohan, Suhaan and Adit were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : $\displaystyle 2$ : 1. Their fixed capitals were : ₹ $\displaystyle 2,00,000$, ₹ $\displaystyle 1,00,000$ and ₹ $\displaystyle 1,00,000$ respectively. For the year ended 31st March, $\displaystyle 2023$, interest on capital was credited to their accounts @ $\displaystyle 8$% p.a. instead of $\displaystyle 5$% p.a. Pass necessary adjusting journal entry. Show your workings clearly.ORManoj and Nitin were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : 1. On 31st March, $\displaystyle 2023$, the balances in their capital accounts after making adjustments for profits and drawings were ₹ $\displaystyle 90,000$ and ₹ $\displaystyle 80,000$ respectively. The net profit for the year ended 31st March, $\displaystyle 2023$ amounted to ₹ $\displaystyle 30$,000. During the year Manoj withdrew ₹ $\displaystyle 40,000$ and Nitin withdrew ₹ $\displaystyle 20$,000. Subsequently, it was noticed that Interest on Capital @ $\displaystyle 10$% p.a. was not provided to the partners. Also Interest on Drawings to Manoj ₹ $\displaystyle 3,000$ and to Nitin ₹ $\displaystyle 2,000$ was not charged. Pass necessary adjusting journal entry. Show your workings clearly.
OR
Manoj and Nitin were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : 1. On 31st March, $\displaystyle 2023$, the balances in their capital accounts after making adjustments for profits and drawings were ₹ $\displaystyle 90,000$ and ₹ $\displaystyle 80,000$ respectively. The net profit for the year ended 31st March, $\displaystyle 2023$ amounted to ₹ $\displaystyle 30$,000. During the year Manoj withdrew ₹ $\displaystyle 40,000$ and Nitin withdrew ₹ $\displaystyle 20$,000. Subsequently, it was noticed that Interest on Capital @ $\displaystyle 10$% p.a. was not provided to the partners. Also Interest on Drawings to Manoj ₹ $\displaystyle 3,000$ and to Nitin ₹ $\displaystyle 2,000$ was not charged. Pass necessary adjusting journal entry. Show your workings clearly.Marking-scheme solution
In the Books of Mohan, Suhaan and Adit
JOURNAL
Date Particulars Amount Amount
LF
Dr (₹) Cr (₹)
Adit’s Current A/c Dr. $\displaystyle 1,000$
To Suhaan’s Current A/c $\displaystyle 1,000$
(Adjustment entry for Interest on Capital
credited at a higher rate)
Working Notes:
Statement of Adjustment
Particulars Mohan Suhaan Adit
₹ ₹ ₹
Interest on capital to be debited $\displaystyle (6,000)$ $\displaystyle (3,000)$ $\displaystyle (3,000)$
Profit to be credited now (₹$\displaystyle 12,000$ in $\displaystyle 3$:$\displaystyle 2$:$\displaystyle 1$) $\displaystyle 6,000$ $\displaystyle 4,000$ $\displaystyle 2,000$
Adjustment - $\displaystyle 1,000$ $\displaystyle (1,000)$
Cr. Dr.
Q. Manoj and Nitin were partners in a firm….
Manoj and Nitin
Ans. In the Books of
JOURNAL
Date Particulars LF Amount Amount
Dr (₹) Cr (₹)
Manoj’s Capital A/c Dr. $\displaystyle 2,000$
To Nitin’s Capital A/c $\displaystyle 2,000$
(Adjustment entry for omission of Interest
on Capital and Interest on Drawings)
Working Notes:
Calculation of Opening Capital
Particulars Manoj Nitin
₹ ₹
Closing Capital $\displaystyle 90,000$ $\displaystyle 80,000$
Add: Drawings $\displaystyle 40,000$ $\displaystyle 20,000$
Less: Profit (₹$\displaystyle 30,000$ in $\displaystyle 2$:$\displaystyle 1$) $\displaystyle (20,000)$ $\displaystyle (10,000)$
Opening Capital $\displaystyle 1,10,000$ $\displaystyle 90,000$
Statement of Adjustment
Particulars Manoj Nitin
₹ ₹
Amount to be credited
Interest on Capital $\displaystyle 11,000$ $\displaystyle 9,000$
Less: Interest on Drawings $\displaystyle (3,000)$ $\displaystyle (2,000)$
$\displaystyle 8,000$ $\displaystyle 7,000$
Amount to be debited now (₹$\displaystyle 15,000$ in $\displaystyle 2$:$\displaystyle 1$) $\displaystyle (10,000)$ $\displaystyle (5,000)$
Adjustment $\displaystyle (2,000)$ $\displaystyle 2,000$
Dr Cr
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CBSE Class 12 Accountancy past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.