Question

Can anyone answer this question with sending the working.
How you did the working??? ​

Answer 1

Answer:

I can't understand ok ok ook ok

Answer 2

Given:

• A, B and C are partners in a firm, sharing profits and losses in the ratio 2:2:1.
• Their fixed capitals are Rs 3,00,000, Rs 2,00,000 and Rs 1,00,000 respectively.
• Interest on capital is to be charged at 10% p.a. but it was provided at 12% p.a. instead.

Objective: To rectify the error and pa‎ss the necessary entry.

Answer:

Interest on capital [wrong amount - 12%]:

Interest on capital = Capital × (Rate ÷ 100)

For A:

• Interest on capital = Rs 3,00,000 × (12 ÷ 100) = Rs 36,000

For B:

• Interest on capital = Rs 2,00,000 × (12 ÷ 100) = Rs 24,000

For C:

• Interest on capital = Rs 1,00,000 × (12 ÷ 100) = Rs 12,000

Interests on capitals that have been wrongly charged will be recorded on the debit side of the adjustment table [credit side of the firm's column.]

Interest on capital [right amount - 10%]:

Interest on capital = Capital × (Rate ÷ 100)

For A:

• Interest on capital = Rs 3,00,000 × (10 ÷ 100) = Rs 30,000

For B:

• Interest on capital = Rs 2,00,000 × (10 ÷ 100) = Rs 2,00,000

For C:

• Interest on capital = Rs 1,00,000 × (10 ÷ 100) = Rs 10,000

Interests on capitals that have been rightly charged are to be recorded on the credit side of the adjustment table [debit side of the firm's column.]

Calculation of profit/loss:

To determine profit/loss, observe the firm's balance. If the balancing figure appears on the debit side, it is profit. Else, loss.

Credit = Rs 72,000

Debit = Rs 60,000

Balancing figure = Rs 72,000 - Rs 60,000 = Rs 12,000 [Dr.]

Calculation of profit distribution:

Since they share their profits and losses in the ratio 2:2:1, it will be distributed accordingly.

For A:

• Profit share = Rs 12,000 × 2/5 = Rs 4,800

For B:

• Profit share = Rs 12,000 × 2/5 = Rs 4,800

For C:

• Profit share = Rs 12,000 × 1/5 = Rs 2,400

Balance each partner's figures to determine the adjusting entry.

Adjusting entry:

A's current A/c ... Dr - Rs 1,200

• To B's current A/c - Rs 800
• To C's current A/c - Rs 400

Therefore, the adjusting entry is (B) Dr A Rs 1,200; Cr B Rs 800; Cr C Rs 400.

The Adjustment Table has been attached below.