Sultan, Singh and Tutsi were partners in a firm sharing profits and losses in the ratio of $\displaystyle 9$ : $\displaystyle 7$ : 4. Their fixed capitals were ₹ $\displaystyle 6,00,000$, ₹ $\displaystyle 5,00,000$ and ₹ $\displaystyle 4,00$,000. The partnership deed provided that interest on partners capital accounts will be allowed at $\displaystyle 10$% per annum. After the final accounts for the year were prepared, it was found that interest on capital was allowed @ $\displaystyle 12$% per annum. Pass the necessary adjusting journal entry.

OR

Sameer and Mar veer were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : 3. On 1st April, $\displaystyle 2024$, they admitted Sandeep as a new partner for $\displaystyle 1$/5th share in the profits with a guaranteed minimum amount of ₹ $\displaystyle 80$,000. Sameer and Mar veer continue to share profits as before but agreed to bear any deficiency on account of guarantee to Sandeep in the ratio of $\displaystyle 3$ : 5. The net profit of the firm for the year ended 31st March, $\displaystyle 2025$ was ₹ $\displaystyle 3,20$,000. Prepare Profit and Loss Appropriation Account of Sameer, Mar veer and Sandeep for the year ended 31st March, 2025.

Books of Sultan, Singh and Tulsi Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) Tulsi’s Current A/c Dr. $\displaystyle 2,000$ To Sultan’s Current A/c $\displaystyle 1,500$ To Singh’s Current A/c $\displaystyle 500$ (Interest on capital provided at a higher rate, now rectified) Adjustment Table Partners Dr. Interest on capital Cr. Profits (₹) Net Effect @ $\displaystyle 2$% (₹) $\displaystyle 9$:$\displaystyle 7$:$\displaystyle 4$ Dr. (₹) Cr. (₹) Sultan $\displaystyle 12,000$ $\displaystyle 13,500$ - $\displaystyle 1,500$ Singh $\displaystyle 10,000$ $\displaystyle 10,500$ - $\displaystyle 500$ Tulsi $\displaystyle 8,000$ $\displaystyle 6,000$ $\displaystyle 2,000$ - $\displaystyle 30,000$ $\displaystyle 30,000$ $\displaystyle 2,000$ $\displaystyle 2,000$ Q. (b) Sameer and Manveer were partners in a firm… Ans. Books of Sameer, Manveer and Sandeep Profit and Loss Appropriation A/c Dr. for the year ended 31st March $\displaystyle 2025$ Cr. Particulars Amount Particulars Amount (₹) (₹) To Profit transferred to: By Profit and Loss A/c $\displaystyle 3,20,000$ (Net Profit) Sameer’s Capital A/c $\displaystyle 1,60,000$ ½ $\displaystyle 1,54,000$ Less Share of deficiency$\displaystyle (6,000)$ Manveer’s Capital A/c $\displaystyle 96,000$ ½ ½ $\displaystyle 86,000$ Less Share of deficiency$\displaystyle (10,000)$ Sandeep’s Capital A/c $\displaystyle 64,000$ Add Share of deficiency from: Sameer $\displaystyle 6,000$ ½ $\displaystyle 80,000$ Manveer $\displaystyle 10,000$ $\displaystyle 3,20,000$ $\displaystyle 3,20,000$