CBSE 2014, Set 2

Question

Anju, Manju and Ruchi were partners sharing profits in the ratio of 5 : 3 : 2. Capitals on 1st April, 2012: Anju Rs 3,00,000; Manju Rs 5,00,000; Ruchi Rs 7,00,000. Anju withdrew Rs 30,000 on 1st August, 2012. Manju took medicines worth Rs 25,000 from the firm on same date. Ruchi withdrew Rs 1,50,000 from her capital on 1st December, 2012. Interest on drawings @ 6% p.a. was not charged. Give the necessary adjusting journal entry with working notes. State two values the partners wanted to communicate.

Edvaya · Accepted Answer

The correct answer is Subjective. **Working Notes — Interest on Drawings:** | Partner | Drawings | Period | Interest @ 6% p.a. (Rs) | |---|---|---|---| | Anju | 30,000 | 8 months (Aug to Mar) | 30,000 × 6% × 8/12 = **1,200** | | Manju | 25,000 | 8 months (Aug to Mar) | 25,000 × 6% × 8/12 = **1,000** | | Ruchi | 1,50,000 | 4 months (Dec to Mar) | 1,50,000 × 6% × 4/12 = **3,000** | | **Total** | | | **5,200** | **Adjusting Table:** | Particulars | Anju (Rs) | Manju (Rs) | Ruchi (Rs) | Total (Rs) | |---|---|---|---|---| | Interest on Drawings (to be debited) | 1,200 | 1,000 | 3,000 | 5,200 | | Profit of Rs 5,200 redistributed (5:3:2) | 2,600 | 1,560 | 1,040 | 5,200 | | **Net Effect** | **+1,400 (Cr.)** | **+560 (Cr.)** | **−1,960 (Dr.)** | Nil | **Adjusting Journal Entry:** | Particulars | Dr. (Rs) | Cr. (Rs) | |---|---|---| | Ruchi's Capital A/c Dr. | 1,960 | | | To Anju's Capital A/c | | 1,400 | | To Manju's Capital A/c | | 560 | | *(Interest on drawings omitted; now adjusted)* | | | **Values communicated by the partners:** | # | Value | |---|---| | 1 | **Duty for the nation / Social responsibility** — Helping flood victims personally. | | 2 | **Helping the needy** — Providing medicines and daily necessities to affected people. |

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Accountancy > Accounting For Partnership Firms > Fundamentals Of Partnership

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