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Past Adjustment Questions

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221 views

Past Adjustment Questions

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kvjlano2
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ILLUSTRATION 40.

A, B, C and D are equal partners in a fim. Their capitals on lst April, 2021 were
Z50,000; 30,000; 25,000 and 15,000 respectively. After closing the accounts for
the year ended 31st March, 2022 it was discovered that according to the partnership
deed interest @ 10% per annum on partner's Capitals was not provided before
distribution of profits. It was agreed among the partners to make the adjusting entry at
the beginning of the next year rather than to alter the Balance Sheet. Pass the necessary
journal entry assuming that the capitals are not fixed.
ILLUSTRATION 41.
The partners of a firm, Alia, Bhanu and Chand distributed the profits for the year
ended 31st March, 2017, 780,000 in the ratio of 3 : 3:2 without providing for the
following adjustments :
(a) Alia and Chand were entitled to a salary of ? 1,500 each p.m.
(6) Bhanu was entitled for a salary of 4,000 p.a.
Pass the necessary Journal entry for the above adjustments in the books of the
firm. Show workings clearly. (C.B.S.E. Sample Paper, 2019)
ILLUSTRATION 42.
4,Band Care partners in a firm. They have omitted interest on capital @10% p.a.
for three years ended 31st March, 2022. Their fixed capitals on which interest was to
be calculated throughout were :
A 1,00.000
B 7 80,000
C 7 70,000
Give the necessary adjusting journal entry with working notes.
pass
profit
partnershipclosed
beginning
oussary
sharing off, 40. Q.
are
d agreement of it
After
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discovered the
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stoodAdjustments
e entry 2: has
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the follows
at of
the omitted
l. Instead interest the
nning partnership
: in
R8,00,000; of Ato on the
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Balance been
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Q. 41. 4, B, Cand Dare partners sharing profits in 2:2:1:1. They distributed
the profit for the year ending 31st March 2023. 79.00,000 without providing for the
following
() Salary to A@ 15,000 per month.
(ii) Salary toB and D @ 30,000 per quarter toeach partner.
Give necessary adjusting journal entry.
[Ans. B's Capital Alc Dr. 20,000
C's Capital A/e Dr. 70,000
To A's Capital A/c 40,000
To D'sCapital A/c 50,000|
Q. 42. A, Band Care partners sharing profits and losses in the ratio of |:2:3.
They have omitted interest on capital (a 8% p.a. for two years ended 3Ist March, 2023.
Their fixed capitals were 74,00,000, T6,00,000 and 8,00,000 respectively. Pass the
necessary adjusting entry.
[Ans. C's Current Alc Dr. 16,000
To A 's Current A/c 16,000|
Illustration 38.
Pand Qwere partners in afirm sharing profits equally. Their fixed capitals were 1,00,000and
T50,000 respectively. The Partnership Deed provided for Interest on Capital at the rate of 10%
per annum. For the year ended 31st March, 2016, profits of the firm were distributed without
providing Interest on Capital.
Pass necessary adjustment entry to rectify the error. (Delhi2017)
55. P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were 2,00,000
and 3,00,000 respectively. The Partnership Deed provided for interest on capital @ 12% per annum.
For the year ended 31st March, 2016, profits of the firm were distributed without providing interest
on capital.
Pass necessary adjustment entry to rectify the error. (Outside Delhi 2017)
[Ans.: Debit P's Current A/c and Credit Q's Current A/cby 6,000.]
56. Azad and Benny are equal partners. Theircapitals are ? 40,000 and 80,000 respectively. After the accounts
for the year had been prepared, it was noticed that interest @5% p.a. as provided in the Partnership Deed
was not credited to their Capital Accounts before distribution of profits. It is decided to pass an adjustment
entry in the beginning of the next year. Record the necessary Journal entry.
[Ans.: Debit Azad by 1,000 and Credit Benny by 1,000.)

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