MENU
Question -

Anju, Manju and Mamta are partners whose fixed capitals were ₹ 10,000, ₹ 8,000 and ₹ 6,000, respectively. As per the partnership agreement, there is a provision for allowing interest on capitals @ 5% p.a. but entries for the same have not been made for the last three years. The profit sharing ratio during there years remained as follows:

Year

Anju

Manju

Mamta

2014

4

3

5

2015

3

2

1

2016

1

1

1
Make necessary and adjustment entry at the beginning of the fourth year i.e. Jan. 2017.



Answer -

Intereston Capital

    Anuj = 10,000 ×

5

 = ₹ 500

100

 

Manju = 8,000 ×

5

 = ₹ 400

100

 

Mamta = 6,000 ×

5

 = ₹ 30

100

Adjustmentof profit

Year2014

 

Anuj

 

Manju

 

Mamta

=

Total

Interest on Capital

500

 

400

 

300

 

1,200

Wrong distribution of ₹ 1,200 (4:3:5)

(400)

 

(300)

 

(500)

=

(1,200)

 

100

 

100

 

(200)

 

NIL

 

Year2015

 

Anuj

 

Manju

 

Mamta

=

Total

Interest on Capital

500

 

400

 

300

 

1,200

Wrong distribution of ₹ 1,200 (3:2:1)

(600)

 

(400)

 

(200)

=

(1,200)

 

(100)

 

NIL

 

100

 

NIL

Year2016

 

Anuj

 

Manju

 

Mamta

=

Total

Interest on Capital

500

 

400

 

300

 

1,200

Wrong distribution of ₹ 1,200 (1:1:1)

(400)

 

(400)

 

(400)

=

(1,200)

 

100

 

NIL

 

(100)

 

NIL

FinalAdjustment

 

Anuj

 

Manju

 

Mamta

2014

100

 

100

 

(200)

2015

(100)

 

NIL

 

100

2016

100

 

NIL

 

(100)

 

100

 

100

 

(200)

AdjustingJournal Entry

Date

 

Particulars

 

L.F

Debit Amount

₹

Credit Amount

₹

Jan. 2017

 

 

 

 

 

 

Mamta’s Capital A/c

Dr.

 

200

 

 

To Anuj’s Capital A/c

 

 

 

100

 

To Manju Capital A/c

 

 

 

100

 

(Adjustment of profit made)

 

 

 

 

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
NodeJS Interview Questions Answers
ASP.Net Interview Questions Answers
Interview Questions Answers
×