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2.30 Double Entry Book Keeping—CBSE XII

[Ans.: 2016–17:
For Interest on Capital: Dr. A’s Current A/c by ` 350; B’s Current A/c by ` 200 and C’s Current A/c by ` 110;
Cr. Profit and Loss Adjustment A/c ` 660.
For Profit: Dr. Profit and Loss Adjustment A/c by ` 660;
Cr. A’s Current A/c by ` 220; B’s Current A/c by ` 220 and C’s Current A/c by ` 220.
2017–18:
For Interest on Capital: Dr. A’s Current A/c by ` 360; B’s Current A/c by ` 210 and C’s Current A/c by ` 110;
Cr. Profit and Loss Adjustment A/c ` 680;
For Profit: Dr. Profit and Loss Adjustment A/c by ` 680
Cr. A’s Current A/c by ` 204; B’s Current A/c by ` 272 and C’s Current A/c by ` 204.]
Note: If question requires necessary single Adjustment Entry:
Dr. A’s Current A/c by ` 286;
Cr. B’s Current A/c by ` 82 and C’s Current A/c by ` 204.
27. On 31st March, 2018, the balances in the Capital Accounts of Ekta, Ankit and Chahat after making
adjustments for profits and drawings were ` 1,50,000, ` 2,10,000 and ` 2,70,000 respectively. Subsequently,
it was discovered that the interest on capital and drawings had been omitted.
(a) The profit for the year ended 31st March, 2018 was ` 1,20,000.
(b) During the year Ekta withdrew ` 24,000 and Ankit and Chahat each withdrew a sum of ` 24,000 in
equal instalments in the middle of each quarter.
(c) The interest on drawings was to be charged @ 5% p.a. and interest on capital was to be allowed
@ 10% p.a.
(d) The profit-sharing ratio among the partners was 1 : 2 : 3.
Showing your working notes clearly, pass the necessary rectifying entry.
[Ans.: Dr. Chahat’s Capital A/c—` 5,400; Cr. Ekta’s Capital A/c—` 5,400.]