Page 338 - MA-12

Model Test Papers M.29

Working Notes:
1. CALCULATION OF OPENING CAPITAL
Particulars Raghubir (`) Balbir (`) Krantibir (`)
A. Closing Capital 60,000 2,20,000 4,40,000
B. Add: Drawings already debited 2,40,000 2,40,000 2,40,000
3,00,000 4,60,000 6,80,000
C. Less: Profit already credited 80,000 20,000 20,000
D. Opening Capital plus Interest on Capital 2,20,000 4,40,000 6,60,000
E. Less: Interest on Capital (D × 10/110) 20,000 40,000 60,000
F. Opening Capital 2,00,000 4,00,000 6,00,000

2. STATEMENT SHOWING REQUIRED ADJUSTMENT
Particulars Raghubir‘s Capital A/c Balbir‘s Capital A/c Krantibir’s Capital A/c Firm
Dr. (`) Cr. (`) Dr. (`) Cr. (`) Dr. (`) Cr. (`) Dr. (`) Cr. (`)
I. Amount already credited,
now taken back:
Interest on Capital @ 10% 20,000 ... 40,000 ... 60,000 ... ... 1,20,000
Share of Profit (4 : 1 : 1) 80,000 ... 20,000 ... 20,000 ... ... 1,20,000
II. Amount which should
have been credited:
Interest on Capital @ 12% ... 24,000 ... 48,000 ... 72,000 1,44,000 ...
Share of Profit ` 96,000
(i.e., ` 2,40,000 – ` 1,44,000)
in ratio of 1 : 1 : 1 ... 32,000 ... 32,000 ... 32,000 96,000 ...
1,00,000 56,000 60,000 80,000 80,000 1,04,000 2,40,000 2,40,000
III. Net Effect 44,000 (Dr.) 20,000 (Cr.) 24,000 (Cr.) ...

(b) JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
2019
March 31 Profit and Loss Appropriation A/c ...Dr. 1,52,000
To Vrindan’s Capital A/c 68,000
To Kundan’s Capital A/c 34,000
To Srijan’s Capital A/c 50,000
(Being the distribution of profit among partners)

Dr. PROFIT AND LOSS APPROPRIATION ACCOUNT for the year ending 31st March, 2019 Cr.
Particulars ` Particulars `
To Vrindan’s Capital A/c (2/4 × ` 1,52,000) 76,000 By Profit and Loss A/c (Net Profit) 1,52,000
Less: Deficiency borne (2/3 × ` 12,000) 8,000 68,000
To Kundan’s Capital A/c (1/4 × ` 1,52,000) 38,000
Less: Deficiency borne (1/3 of ` 12,000) 4,000 34,000
To Srijan’s Capital A/c 38,000
Add: Deficiency recovered from:
Vrindan 8,000
Kundan 4,000 50,000
1,52,000 1,52,000