[NCERT] Q 40 Solutions Accounting for Partnership Basic Concepts Class 12

Solution of Question number 40 of Accounting for Partnership Basic Concepts NCERT Accountancy solution Class 12 CBSE Board

On March 31, 2017 the balance in the capital accounts of Eluin, Monu and Ahmed after making adjustments for profits, drawings, etc., were ₹ 80,000, ₹ 60,000 and ₹ 40,000 respectively. Subsequently, it was discovered that interest on capital and interest on drawings had been omitted.

The partners were entitled to interest on capital @ 5% p.a. The drawings during the year were Eluin ₹ 20,000; Monu, ₹ 15,000 and Ahmed ₹ 9,000. Interest on drawings chargeable to partners were Eluin ₹ 500, Monu ₹ 360 and Ahmed ₹ 200. The net profit during the year amounted to ₹ 1,20,000. The profit sharing ratio was 3 : 2 : 1. Record necessary adjustment entry.

[Ans : Eluin (Dr.) ₹ 570, Monu (Cr.) ₹ 10 and Ahmed (Cr.) ₹ 560]

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