Past Adjustments Questions
Past Adjustments Questions
137
[Hints: () Ifit is not clearly mentioned whether the balance of a Current Account is
Debit or Credit, it will be presumed that its balance is Credit.
(2) Intereston Drawings will be calculated for six
months.]J
Adjustments in the Closed Accounts
Q. 40. After the accounts of the patnership have been drawn up and the books
closed off. it is discovered that interest on capitals@8% p.a. as provided in the
partnership agreement has been omitted to be recorded. Their capital accounts at the
beginning ofthe year stood as follows: A R8,00,000; B T4,00,000; C 3,00,000. Their
profit sharing ratio was 2: 1:1. nstead of altering the Balance Sheet it is decided to
pass necessary adjusting entry at the beginning of the next year.
You are required to give the necessary journal entry.
TAns. C's Capital A/c Dr. 6,000
To A's Capital A/c 4,000
To B's Capital A/c 2,000]
Q. 41.4, B, C and D are partners sharing profits in 2: 2:1:1. They distributed
the profit for the year ending 31st March 2020, 79,00,000 without providing for the
following
() Salary to A @15,000 per month.
() Salary to B and D@ T30,000 per quarter to each partner.
Give necessary adjusting journal entry.
[Ans. B's Capital A/c Dr. 20,000
C's Capital A/c Dr. 70,000
To A's Capital A/c 40,000
To D's Capital A/c 50,000]
Q. 42. A, B and C are partners sharing profits and losses in the ratio of 1:2: 3.
They have omitted interest on capital @8% p.a. for two years ended 3 1st March, 2022.
Their fixed capitals were 4,00,000, F6,00,000 and R8,00,000 respectively. Pass the
necessary adjusting entry.
[Ans. C's Current A/c Dr. 16,000
To A's Current A/c 16,000]
Q. 43. A, B and C are partners sharing profits and losses in the ratio of 5 :3 1.
After the final accounts have been prepared, it was discovered that interest on
drawings had not been taken into consideration. The interest on drawing of partners
amounted to A 78,000, B 76,000 and C 4,000. Give the necessary adjusting journal
entry.
[Ans. C's Capital A/e Dr. 2,000
To A's Capital A/c 2,000]
Q. 44. A, B, C and D are partners sharing profits and losses in 2 2:3 3
respectively. After the accounts of the year had been closed, it was found that interest
on drawings @ 6% p.a. has not been taken into consideration. The drawings of the
partners were:A 20,000; B R24,000; C32,000 and D 44,000. Give the necessary
adjusting entry.
ACCOUNTING FOR PARTNERSHIP FIRMS- FUNDAMENTAL
1.138
D's Capital A/c Dr. 240
[Ans. 120
To A's Capital A/c
To C's Capital A/c 1201
in 2 :I ratio. During the year enda.
Q. 45. A and B were partners sharing profits
31st March, 2022, A's drawings were 50,000 per month drawn in the beginnina
drawn at the end of evew
every month and B's drawings were25,000 per month
month. After the preparation of final accounts, it was discOvered that interest on 4
drawings 12% p.a. was not taken into consideration. Give the necessary adjusting
entry on 1st April, 2022
A's Capital A/c Dr. 13,000
[Ans.
To B's Capital A/c 13,000]
Q. 46. Anil, Sunil and Sanjay have omitted interest on Capitals for two vears
ended on 31st March, 2022. Their fixed capitals in two years were Anil F8,00.000
Sunil 7,00,000 and Sanjay 3,00,000. Rate of interest on Capital is 10% p.a. Their
profit Sharing ratios were in first year 4: 3 :2 and in second year 3 : 2 :1.
Give necessary adjusting entry at the beginning of next year.
[Ans. Current A/cs of Anil & Sanjay will be debited by T10,000 each and Current
A/c of Sunil will be Credited by T20,000.]
Q.47. P, Qand R are partners sharing profits in the ratio of 2: 1:1. Theircapitals
as on 1st April, 2021 were R50,000, R30,000 and T20,000 respectively. At the end of
the year ending 31 st March, 2022 it was found out that interest on capitals@ 12% p.a.,
salaries to P, T500 per month and R T1,000 per month were not adjusted from the
profits. Show adjusting entry to be made in the next year for above adjustments.
[Ans. Capital A/cs of P and Q will be debited by R3,000 and 3,900 respectively;
and Capital A/c of R will be credited by T6,900.]
Q. 48 (A). On lst April, 2021 the Capitals of A and B were 74,00,000 and
T2,00,000 respectively. They divided profits in their capital ratio. Profits for the year
ended 31st March, 2022 were T3,00,000 which have been
duly distributed among the
partners, but the following transactions were not passed through the books:
(a) Interest on Capitals12% p.a.
(b) Interest on Drawings A T12,000; B 10,000.
(c) Commission due to B R20,000 on a special transaction.
(d) A is to be paid a salary of R50,000.
You are required to pass a
journal entry on 10th April, 2022 which will not affect
the P&L A/c of the firm and at the same
time will rectify the errors.
[Ans. B's Capital A/c
Dr. 6,000
To A's Capital A/c 6,000]
Q. 48 (B). Kumar and Raja were
partners in a firm sharing
fixed capitals were Kumar 9,00,000 and profits
7:3. Their in the ratio or
Raja 74,00,000.
partnership deed provided for the following but the profit for the The
without providing for year was distributed
() Interest on capital @9% per annum.
ACCOUNTING FOR PARTNERSHIP FIRMS- FUNDAMENTALS 1.139
(i) Kumar's salary 50,000 per year and Raja's salary3,000 per month.
FUNDAMENTALS
1.141
ACCOUNTING FOR PARTNERSHIPFIRMS
Care partners in a firm sharing profits and losses in the ratio
of
Q. 56. A, B and
R2,00,000 and R3,00,000 respectively.
4:3:3. Their fixed capitals were R1,00,000,
was credited to them 10%
Forthe year ended 3lst March, 2022 interest on capital
instead of 9% p.a. Pass the necessary adjusting journal entry.
B's Current A/c Dr. 200
[Ans.
C's Current A/e Dr. 1,200
To A's Current A/c 1,400]
Current Accounts will be debited or credited.
Note: Since the capitals are fixed,
ratio of 1:2:3.A withdrew
Q.57. A, B and C were partners sharing profits in the
the year and C withdrew 715,000
75,000 every month, B withdrew T60,000 during 31st March 2021,
during each quarter. It was discovered that for the year ending
interest on drawings was charged @ 8% p.a. whereas there
is no provision for interest
on drawings in the partnership deed. Pass necessary rectifying entry.
C's Capital A/c Dr. 1,200
[Ans.
To A's Capital A/c 1,200]
Hint: Interest on each partner's drawings R2,400.
drawn and the books
Q. 58. After the accounts of a partnership have been up
closed off, it is discovered that for the years ended 31st March, 2021 and 2022, interest
has been credited to the partners upon their capitals at 5% per annum although,
no
Mohan
[Ans. Opening Capitals- 27,000, Vijay 21,000, Anil
715,000;unts
Anil's Capital by 550 and Cr. Mohan's Capital by R550. Adjusted Capital Dr
balances Mohan R30,550; Vijay F25,000; Anil 19,450.]