Question

44. Record the following information in the capital accounts of partners Lata and Usha assuming their
capital as fixed :
Lata
Usha
₹
₹
Capital as on 1-4-2019
50,000
56,000
Current Accounts as on 1-4-2019 (Credit)
21,000
15,750
Drawings during 2019-20
14,000
12,250
Interest on Capital
12%
12%
Interest on Drawings
350
485
Share of Profit for 2019-20
10,500
14,000
Salary
13,000
11,000
Commission
3,200
1,600
Bonus
5,400
3,700
(Ans. Balance of Partners Current Accounts : Lata * 44,750 (Credit); Usha 40,035 (Credit)]​

Answer 1

Answer:

Opening capital of partners= Closing capital+Drawings-Profit

A's Opening capital=Rs4,00,000+Rs36,000−Rs1,20,000=Rs3,16,000

B's Opening capital=Rs3,00,000+Rs36,000−Rs80,000=Rs2,56,000

Past adjustment table

Particulars A B Firm

Interest on capital

Wrongly distributed profit taken back

Profit distributed rightly

Balance 15,800(Cr.)

1,20,000(Dr.)

1,02,840(Cr.)

1,360(Dr.) 12,800(Cr.)

80,000(Dr.)

68,560(Cr.)

1,360(Cr.) 28,600(Dr.)

2,00,000(Cr.)

1,74,100(Dr.)

Nil

Adjusted Partner's Capital a/c

Particulars(Dr.) A B Particulars(Cr.) A B

To drawings a/c

To balance c/d 36,000

3,98,640 36,000

3,01,360 By capital a/c

By interest on capital a/c

By p/l adjustment