12th

Q12. Kavita, Meenakshi and Gauri are partners doing a paper business in Ludhiana. After the accounts of partnership have been drawn up and closed, it was discovered that for the year ending 31​stMarch 2013 and 2014. Interest on capital has been allowed to partners @ 6% p.a although there is no provision for interest on capital in partnership deed. Their fixed capitals were Rs. 2,00,000; Rs. 1.60,000 and Rs. 1,20,000 respectively. During the last years they had shared the profit as under:

                                     Year                            Ratio
                                  31 March 2013            3 : 2 : 1
                                  31 March 2014            5 : 3 : 2
      You are requied to given necessary adjusting entry on April 1, 2014.

Dear Student
 
Journal 
Date Particulars    Debit   Credit 
         
  Meenakshi's Capital A/c Dr.                     960  
  Gauri's Capital A/c Dr.                 3,840  
    To Kavita's Capital A/c                     4,800
  (Being adjustment made)      
 
Calculation of Net Effect of Adjustments on the Partners Capital Accounts
Particulars  Kavita  Meenakshi  Gauri Total
Amount already credited        
As Interest on Capital         
2012-13                 12,000                 9,600                 7,200 28,800
2013-14                 12,000                 9,600                 7,200 28,800
A.Total amount credited wrongly 24,000 19,200 14,400 57,600
         
Items to be actually credited (Both years)        
As profit :        
2012-13 (3:2:1)                 14,400                 9,600                 4,800 28,800
2013-14 (5:3:2)                 14,400                 8,640                 5,760 28,800
B.Total Amount that should have been credited                 28,800               18,240               10,560 57,600
         
Net Effect to be given (A - B)                 (4,800)                     960                 3,840  
   Credit   Debit   Debit   



Regards

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