CBSE 2024, Set 3

Question

Anvi, Vani and Karan were partners in a firm sharing profits in the ratio of 2:2:1. Their fixed capitals were ₹4,00,000, ₹5,00,000 and ₹6,00,000 respectively. For the year ended 31st March, 2023, interest on capital was credited to the partners capital accounts @ 6% p.a. instead of 10% p.a. Pass the necessary adjusting Journal entry.

Edvaya · Accepted Answer

The correct answer is Subjective. **1. Statement showing adjustment:** | Particulars | Anvi (₹) | Vani (₹) | Karan (₹) | Total (₹) | |---|---|---|---|---| | Interest to be credited (remaining 4%) | 16,000 | 20,000 | 24,000 | 60,000 (Cr) | | Loss to be debited (in 2:2:1 ratio) | (24,000) | (24,000) | (12,000) | (60,000) (Dr) | | **Net Effect** | **8,000 (Dr)** | **4,000 (Dr)** | **12,000 (Cr)** | **Nil** | **2. Journal Entry:** | Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) | |---|---|---|---|---| | | Anvi's Current A/c Dr. Vani's Current A/c Dr. To Karan's Current A/c *(Being adjustment entry passed for short credit of interest on capital)* | | 8,000 4,000 | 12,000 | *(Note: Current accounts are used since capitals are fixed).*

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Accountancy > Accounting For Partnership Firms > Fundamentals Of Partnership

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