Question

Q.7 Anil, Vineet and Vipul were partners in a firm manufacturing food items. They were sharing profits in the ratio
of 5:3: 2. Their capitals on 1st April, 2019 were 4,00,000, 5,00,000 and 19,00,000 respectively. After the
floods in Uttranchal, all partners decided to help the flood victims personally. For this Anil withdrew 30,000
from the firm on 30th September, 2019. Vineet instead of withdrawing cash from the firm took some food
items amounting to *25,000 from the firm and distributed those to flood victims. On the other hand, Vipul
withdrew 2,50,000 from his capital on 1st January, 2020 and built a shelter-home to help flood victims. The
partnership deed provides for charging interest on drawings @6% p.a. After the final accounts were prepared it
was discovered that interest on drawings had not been charged.
4 marks
Give the necessary adjusting entry and show the working notes clearly.
firm on lanung 12020 They contributed -50.000, -40.000 and
HAN​

Answer 1

Explanation:

profits in the ratio

of 5:3: 2. Their capitals on 1st April, 2019 were 4,00,000, 5,00,000 and 19,00,000 respectively. After the

floods in Uttranchal, all partners decided to help the flood victims personally. For this Anil withdrew 30,000

from the firm on 30th September, 2019. Vineet instead of withdrawing cash from the firm took some food

items amounting to *25,000 from the firm and distributed those to flood victims. On the other hand, Vipul

withdrew 2,50,000 from his capital on 1st January, 2020 and built a shelter-home to help flood victims. The

partnership deed provides for charging interest on drawings @6% p.a. After the final accounts were prepared it

was discovered that interest on drawings had not been charged.

4 marks

Give the necessary adjusting entry and show the working notes clearly.

firm on lanung 12020 They contributed -50.000, -40.000 and

HAN