CBSE 2025, Set 2

Question

(b) R, S and T were partners in a firm. After the accounts of the partnership had been drawn up and the books closed off, it was discovered that the profit for the year ended 31st March, 2024 amounting to ₹ 3,00,000 had been distributed equally. The partnership deed provided for the following:
(i) Interest on capital was to be allowed @ 10% p.a.
(ii) A salary of ₹ 50,000 p.a. was to be allowed to R.
The capitals of R, S and T on 1st April, 2023 were ₹ 2,00,000, ₹ 1,50,000 and ₹ 1,00,000 respectively.

Pass the necessary adjusting journal entry to rectify the above errors.

Edvaya · Accepted Answer

The correct answer is Subjective. **Statement Showing Adjustment** | Particulars | R (₹) | S (₹) | T (₹) | Total (₹) | |---|---|---|---|---| | (1) Profit wrongfully distributed equally, now reversed (Dr.) | 1,00,000 | 1,00,000 | 1,00,000 | 3,00,000 | | (2) Interest on Capital @ 10% (Cr.) | 20,000 | 15,000 | 10,000 | 45,000 | | (3) Salary to R (Cr.) | 50,000 | - | - | 50,000 | | (4) Remaining Correct Profit (3,00,000 - 95,000 = 2,05,000) distributed equally (Cr.)* | 68,333 | 68,333 | 68,334 | 2,05,000 | | **Total Correct Credit (2+3+4)** | **1,38,333** | **83,333** | **78,334** | **3,00,000** | | **Net Effect (Cr - Dr)** | **38,333 (Cr.)** | **16,667 (Dr.)** | **21,666 (Dr.)** | **NIL** | *(Note: Since profit sharing ratio is not given, it is assumed to be equal).* **Adjusting Journal Entry:** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | 2024 Mar 31 | S's Capital A/c ...Dr. T's Capital A/c ...Dr.     To R's Capital A/c (Adjustment of profit, interest on capital and salary) | | 16,667 21,666 | 38,333 |

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Accountancy > Accounting For Partnership Firms > Fundamentals Of Partnership

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