[NCERT] Q 42 Solutions Accounting for Partnership Basic Concepts Class 12

Solution of Question number 42 of Accounting for Partnership Basic Concepts NCERT Accountancy solution Class 12 CBSE Board

Mohan, Vijay and Anil are partners, the balances in their capital accounts being ₹ 30,000, ₹ 25,000 and ₹ 20,000 respectively. In arriving at these figures, the profits for the year ended March 31, 2017 amounting to Rupees 24,000 had been credited to partners in the proportion in which they shared profits. During the year the drawings of Mohan, Vijay and Anil were ₹ 5,000, ₹ 4,000 and ₹ 3,000, respectively. Subsequently, the following omissions were noticed:

(a) Interest on Capital, at the rate of 10% p.a., was not charged.

(b) Interest on Drawings: Mohan ₹ 250, Vijay ₹ 200, Anil ₹ 150 was not recorded in the books.

Record necessary corrections through Journal entries.

[Ans : Debit Anil’s Capital Account by ₹ 550 and Credit Mohan’s Capital Account by ₹ 550]

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