4/14/24, 2:50 PM Past Adjustments Solutions – Eduxir

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Past Adjustments Solutions

Past Adjustments Solutions

This page contains the CBSE accountancy class 12 chapter Accounting for Partnership : Basic Concepts –
Past Adjustments – Numerical Questions Solutions. You can find the questions/answers/solutions for the
chapter 2 of CBSE class 12 accountancy in this page. So is the case if you are looking for CBSE class 12
Commerce related topic Accounting for Partnership : Basic Concepts – Past Adjustments – Numerical
Questions Solutions. If you’re looking for theoretical questions related to Test Your Understanding, Do It
Yourself, Short Answers or Long Answers or Fixed and Fluctuating Capitals Solutions or Distribution of Profits
Solutions or Guarantee of Profit to the Partners Solutions, you can find them at
⁕ Accounting for Partnership : Basic Concepts
⁕ Fixed and Fluctuating Capitals Solutions
⁕ Distribution of Profits Solutions
⁕ Guarantee of Profit to the Partners Solutions

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Accounting for Partnership : Basic Concepts – Past

Adjustments Solutions
37. The net profit of X, Y and Z for the year
Unleash theended March 31, 2016 was ₹ 60,000 and the same was
distributed among them in theirImpossible
agreed ratio of 3 : 1 : 1. It was subsequently discovered that the under
mentioned transactions were not recorded in the books :
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(i) Interest on Capital @ 5% p.a.

(ii) Interest on drawings amounting to X ₹ 700, Y ₹ 500 and Z ₹ 300.
(iii) Partner’s Salary : X ₹ 1000, Y ₹ 1500 p.a.
The capital accounts of partners were fixed as : X ₹ 1,00,000, Y ₹ 80,000 and Z ₹ 60,000. Record the
adjustment entry.
The necessary adjustment entries can be made in two ways.
(a) Through Profit and Loss Adjustment Account
(b) Directly in Partners’ Capital Accounts
(a). Through Profit and Loss Adjustment Account
Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Profit and Loss Adjustment A/c Dr. 12,000
To X’s Capital A/c 5,000
To Y’s Capital A/c 4,000
To Z’s Capital A/c 3,000
(Being Interest on Capital)
X’s Capital A/c Dr. 700
Y’s Capital A/c Dr. 500
Z’s Capital A/c Dr. 300
To Profit and Loss Adjustment A/c 1,500
(Being Interest on Drawings)
Profit and Loss Adjustment A/c Dr. 2,500
To X’s Capital A/c 1,000
To Y’s Capital A/c 1,500
(Being Salary to Partner)
X’s Capital A/c Dr. 7,800
Y’s Capital A/c Dr. 2,600
Z’s Capital A/c Dr. 2,600
To Profit and Loss Adjustment A/c 13,000
(Being loss on Adjustment)

(b). Directly in Partners’ Capital Accounts

Statment Showing Net Effect of Considering Past Adjustments
Amount Amount Amount Total
Details X ₹ ₹ Amount
₹ Y Z ₹
(i) Amount which should have been credited 5,000 (Cr.) 4,000 (Cr) 3,000 (Cr.) 12,000 (Cr.)
as interest on capital
(ii) Amount which should have been debited 700 (Dr.) 500 (Dr.) 300 (Dr.) 1,500 (Dr.)
as interest on drawings
(iii) Amount which should have been credited 1,000 (Cr.) 1,500 (Cr.) – 1,500 (Cr.)
as salary
(iv) Total 5,300 (Cr.) 5,000 (Cr) 2,700 (Cr.) 13,000 (Cr.)

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(v) Amount actually credited 7,800 (Dr.) 2,600 (Dr.) 2,600 (Dr.) 13,000 (Dr.)
by way of share of profit
(₹ 13,000 divided in the ratio 1:3:1)
(vii) Difference between (iv) and (v) Dr. 2,500 Cr. 2,400 Cr. 100 –
(Net Effect) Excess Short Short

Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
X’s Capital A/c Dr. 2,500
To Y’s Capital A/c 2,400
To Z’s Capital A/c 100
(Being adjustment to profit for omission of interest on capital, interest on
drawings and salary)

Working Notes:
Interest on Capital:
X 5
= ₹ 1, 00, 000 ×
​

100
= ₹ 5,000
Y 5
= ₹ 80, 000 ×
​

100
= ₹ 4,000
Z 5
= ₹ 60, 000 ×
​

100
= ₹ 3,000

···

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38. The firm of Harry, Porter and Ali, who have been sharing profits in the ratio of 2 : 2 : 1, have existed
for same years. Ali wants that he should get equal share in the profits with Harry and Porter and he
further wishes that the change in the profit sharing ratio should come into effect retrospectively were for
the last three year. Harry and Porter have agreement on this account.
The profits for the last three years were:
₹
2014-15 22,000
2015-16 24,000
2016-17 29,000
Show adjustment of profits by means of a single adjustment journal entry.
The necessary adjustment entries can be made in two ways.
(a) Through Profit and Loss Adjustment Account
(b) Directly in Partners’ Capital Accounts
(a). Through Profit and Loss Adjustment Account
Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Harry’s Capital A/c Dr. 30,000
Porter’s Capital A/c Dr. 30,000
Ali’s Capital A/c Dr. 25,000
To Profit and Loss Adjustment A/c 75,000
(Being old profit debited to consider adjustment in profit sharing ratio)
Profit and Loss Adjustment A/c Dr. 75,000
To Harry’s Capital A/c 30,000
To Porter’s Capital A/c 30,000
To Ali’s Capital A/c 25,000
(Being new profit credited to consider the adjustment in the profit sharing
ratio)

(b). Directly in Partners’ Capital Accounts

Statment Showing Net Effect of Considering Past Adjustments
Amount Amount Amount Total
Details Harry ₹ ₹ Amount

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₹ Porter Ali ₹
(i) Profit which should have been credited 25,000 (Cr.) 25,000 (Cr) 25,000 (Cr.) 75,000 (C
(in the ratio 1:1:1)
(ii) Amount actually credited 30,000 (Dr.) 30,000 (Dr.) 15,000 (Dr.) 75,000 (D
(in the ratio 2:2:1)
(iii) Difference between (i) and (ii) Dr. 5,000 Dr. 5,000 Cr. 10,000 –
(Net Effect) Excess Excess Short

Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Harry’s Capital A/c Dr. 5,000
Porter’s Capital A/c Dr. 5,000
To Ali’s Capital A/c 10,000
(Being adjustment made after considering the profit sharing ratio as 1:1:1)

Working Notes:
Profit Distributed in 2:2:1 ratio
Total Profit = ₹ 22,000 + ₹ 24,000 + ₹ 29,000
= ₹ 75,000
Harry 2
= ₹ 75, 000 ×
​

5
= ₹ 30,000
Porter 2
= ₹ 75, 000 ×
​

5
= ₹ 30,000
Ali 2
= ₹ 75, 000 ×
​

5
= ₹ 15,000
Profit Distributed in 1:1:1 ratio
Total Profit = ₹ 75,000
Harry 1
= ₹ 75, 000 ×
​

3
= ₹ 25,000
Porter 3
= ₹ 75, 000 ×
​

3
= ₹ 25,000
Ali 1
= ₹ 75, 000 ×
​

3
= ₹ 25,000

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···

39. Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3 : 2. Following is the balance
sheet of the firm as on March 31, 2017.
Balance Sheet as at March 31, 2017
Amount Amount
Liabilities Assets
₹ ₹
Mannu’s Capital 30,000 Drawings :
Shristhi’s Capital 10,000 40,000 Mannu 4,000
Shristhi 2,000 6,000
Other Assets 34,000
40,000 40,000

Profit for the year ended March 31, 2017 was ₹ 5,000 which was divided in the agreed ratio, but interest
@ 5% p.a. on capital and @ 6% p.a. on drawings was omitted. Adjust interest on drawings on an average
basis for 6 months. Give the adjustment entry.
The necessary adjustment entries can be made in two ways.
(a) Through Profit and Loss Adjustment Account
(b) Directly in Partners’ Capital Accounts
(a). Through Profit and Loss Adjustment Account
Journal
Debit Credit
Date Particulars L.F. Amount Amount

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₹ ₹
Profit and Loss Adjustment A/c Dr. 2,000
To Mannu’s Capital A/c 1,50
To Shrishthi’s Capital A/c 50
(Being Interest on Capital)
Mannu’s Capital A/c Dr. 120
Shrishthi’s Capital A/c Dr. 60
To Profit and Loss Adjustment A/c 18
(Being Interest on Drawings)
Mannu’s Capital A/c Dr. 1,092
Shrishthi’s Capital A/c Dr. 728
To Profit and Loss Adjustment A/c 1,82
(Being loss on Adjustment)

(b). Directly in Partners’ Capital Accounts

Statment Showing Net Effect of Considering Past Adjustments
Amount Amount Total
Details Mannu ₹ Amount
₹ Shrishthi ₹
(i) Amount which should have been credited 1,500 (Cr.) 500 (Cr) 2,000 (Cr.)
as interest on capital
(ii) Amount which should have been debited 120 (Dr.) 60 (Dr.) 180 (Dr.)
as interest on drawings
(iii) Total 1,380 (Cr.) 440 (Cr) 1,820 (Cr.)
(iv) Amount actually credited 1,092 (Dr.) 728 (Dr.) 1,820 (Dr.)
by way of share of profit
(₹ 1,820 divided in the ratio 3:2)
(v) Difference between (iii) and (iv) Cr. 288 Dr. 288 –
(Net Effect) Short Excess

Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Shrishthi’s Capital A/c Dr. 280
To Mannu’s Capital A/c 280
(Being adjustment to profit for omission of interest on capital, interest on
drawings)

Working Notes:
Simply put, the problem is stating that the interest on capital and interest on drawings was not considered. Also,
note that the interest on drawing need to be considered for 6 months.
Interest on Capital
Mannu 5
= ₹ 30, 000 ×
​

100
= ₹ 1,500
Shrishthi 5
= ₹ 10, 000 ×
​

100
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= ₹ 500
Interest on Drawings
Duration = 6 months
Mannu 6 6
= ₹ 4, 000 × ×
​ ​

100 12
= ₹ 120
Shrishthi 6 6
= ₹ 2, 000 × ×
​ ​

100 12
= ₹ 60
Loss in Profit = (₹ 1,500 + ₹ 500) – (₹ 120 + ₹ 60)
= ₹ 1,820
Loss adjusted to:
Mannu 3
= ₹ 1, 820 ×
​

5
= ₹ 1,092
Shrishthi 2
= ₹ 1, 820 ×
​

5
= ₹ 728

···

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40. On March 31, 2017 the balance in the capital accounts of Eluin, Monu and Ahmed, after making
adjustments for profits, drawing, 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.
In this problem, we’ve to make adjustments for Interest on Capital and Interest on Drawings.
However, to calculate the interest on capital, we need the Opening Capital.
However, in the problem, the Closing Capital is given.
So, from the Closing Capital, we need to find the Opening Capital.
We know, for the given case, that
Closing Capital = Opening Capital – Drawings + Profits
From this, the Opening Capital can be found as
Opening Capital = Closing Capital + Drawings – Profits
Calculation of Opening Capital
Eluin Monu Ahmed
Closing Capital 80,000 60,000 40,000
Add: Drawings 20,000 15,000 9,000
Less: Profit (60,000) (40,000) (20,000)
Opening Capital 40,000 35,000 29,000

The necessary adjustment entries can be made in two ways.

(a) Through Profit and Loss Adjustment Account
(b) Directly in Partners’ Capital Accounts
(a). Through Profit and Loss Adjustment Account
Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Profit and Loss Adjustment A/c Dr. 5,200
To Eluin’s Capital A/c 2,00
To Monu’s Capital A/c 1,75
To Ahmed’s Capital A/c 1,45
(Being Interest on Capital)
Eluin’s Capital A/c Dr. 500
Monu’s Capital A/c Dr. 360
Ahmed’s Capital A/c Dr. 200
To Profit and Loss Adjustment A/c 1,06
(Being Interest on Drawings)
Eluin’s Capital A/c Dr. 2,070
Monu’s Capital A/c Dr. 1,380

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Ahmed’s Capital A/c Dr. 690

To Profit and Loss Adjustment A/c 4,14
(Being loss on Adjustment)

(b). Directly in Partners’ Capital Accounts

Statment Showing Net Effect of Considering Past Adjustments
Amount Amount Amount Total
Details Eluin ₹ ₹ Amount
₹ Monu Ahmed ₹
(i) Amount which should have been credited 2,000 (Cr.) 1,750 (Cr) 1,450 (Cr.) 5,200 (Cr.)
as interest on capital
(ii) Amount which should have been debited 500 (Dr.) 360 (Dr.) 200 (Dr.) 1,060 (Dr.)
as interest on drawings
(iii) Total 1,500 (Cr.) 1,390 (Cr) 1,250 (Cr.) 4,140 (Cr.)
(iv) Amount actually credited 2,070 (Dr.) 1,380 (Dr.) 690 (Dr.) 4,140 (Dr.)
by way of share of profit
(₹ 4,140 divided in the ratio 3:2:1)
(v) Difference between (iii) and (iv) Dr. 570 Cr. 10 Cr. 560 –
(Net Effect) Excess Short Short

Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Eluin’s Capital A/c Dr. 570
To Monu’s Capital A/c 10
To Ahmed’s Capital A/c 560
(Being adjustment to profit for omission of interest on capital, interest on
drawings)

Working Notes:
Profit Sharing:
Eluin 3
= ₹ 1, 20, 000 ×
​

6
= ₹ 60,000
Monu 2
= ₹ 1, 20, 000 ×
​

6
= ₹ 40,000
Ahmed = ₹ 1, 20, 000 × 1 ​

6
= ₹ 20,000
Interest on Capital
Eluin 5
= ₹ 40, 000 ×
​

100
= ₹ 2,000
Monu 5
= ₹ 35, 000 ×
​

100
= ₹ 1,750
Ahmed = ₹ 29, 000 × 5 ​

100

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= ₹ 1,450
Total Interest on Capital = ₹ 2,000 + ₹ 1,750 + ₹ 1,450
= ₹ 5,200
Total Interest on Drawings = ₹ 500 + ₹ 200
= ₹ 1,060
Profit To Be Adjusted
Add: Interest on Capital ₹ 5,200
Less: Interest on Drawings (₹ 1,060)
₹ 4,140
Share of Loss in Profit:
Eluin = ₹ 4, 140 × 3 ​

6
= ₹ 2,070
Monu = ₹ 4, 140 × 2 ​

6
= ₹ 1,380
Eluin = ₹ 4, 140 × 1 ​

6
= ₹ 690

···

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41. Azad and Benny are equal partners. Their fixed capitals are ₹ 40,000 and , respectively. After the
accounts for the year have been prepared it is discovered that interest at 5% p.a. as provided in the
partnership agreement, has not been credited to the capital accounts before distribution of profits. It is
decided to make an adjustment entry at the beginning of the next year. Record the necessary journal
entry.
The necessary adjustment entries can be made in two ways.
(a) Through Profit and Loss Adjustment Account
(b) Directly in Partners’ Capital Accounts
(a). Through Profit and Loss Adjustment Account
Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Profit and Loss Adjustment A/c Dr. 6,000
To Azad’s Capital A/c 2,000
To Benny’s Capital A/c 4,000
(Being Interest on Capital)
Azad’s Capital A/c Dr. 3,000
Benny’s Capital A/c Dr. 3,000
To Profit and Loss Adjustment A/c 6,000
(Being loss on Adjustment)

(b). Directly in Partners’ Capital Accounts

Statment Showing Net Effect of Considering Past Adjustments
Amount Amount Total
Details Azad ₹ Amount
₹ Benny ₹
(i) Amount which should have been credited 2,000 (Cr.) 4,000 (Cr) 6,000 (Cr.)
as interest on capital
(v) Amount actually credited 3,000 (Dr.) 3,000 (Dr.) 6,000 (Dr.)
by way of share of profit
(₹ 6,000 divided in the ratio 1:1)
(iii) Difference between (i) and (ii) Dr. 1,000 Cr. 1,400 –
(Net Effect) Excess Short

Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Azad’s Capital A/c Dr. 1,000
To Benny’s Capital A/c 1,00

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(Being adjustment to profit for omission of interest on capital)

Working Notes:
As both Azad and Benny are equal partners, the profits should be shared in the 1:1 ratio.
Interest on Capital
Azad 5
= ₹ 40, 000 ×
​

100
= ₹ 2,000
Benny 5
= ₹ 80, 000 ×
​

100
= ₹ 4,000
Total Interest on Capital = ₹ 2,000 + ₹ 4,000
= ₹ 6,000
Loss in Share of Profit
Azad 1
= ₹ 6, 000 ×
​

2
= ₹ 3,000
Benny 1
= ₹ 6, 000 ×
​

2
= ₹ 3,000

···

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42. 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.
In this problem, we’ve to make adjustments for Interest on Capital and Interest on Drawings.
However, to calculate the interest on capital, we need the Opening Capital.
However, in the problem, the Closing Capital is given.
So, from the Closing Capital, we need to find the Opening Capital.
We know, for the given case, that
Closing Capital = Opening Capital – Drawings + Profits
From this, the Opening Capital can be found as
Opening Capital = Closing Capital + Drawings – Profits
Computation of Opening Capital
Mohan Vijay Anil
Closing Capital 30,000 25,000 20,000
Add: Drawings 5,000 4,000 3,000
Less: Profit (8,000) (8,000) (8,000)
Opening Capital 27,000 21,000 15,000

The necessary adjustment entries can be made in two ways.

(a) Through Profit and Loss Adjustment Account
(b) Directly in Partners’ Capital Accounts
(a). Through Profit and Loss Adjustment Account
Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Profit and Loss Adjustment A/c Dr. 6,300
To Mohan’s Capital A/c 2,700
To Vijay’s Capital A/c 2,100
To Anil’s Capital A/c 1,500
(Being Interest on Capital)
Mohan’s Capital A/c Dr. 250
Vijay’s Capital A/c Dr. 200
Anil’s Capital A/c Dr. 150
To Profit and Loss Adjustment A/c 600
(Being Interest on Drawings)

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Mohan’s Capital A/c Dr. 1,900

Vijay’s Capital A/c Dr. 1,900
Anil’s Capital A/c Dr. 1,900
To Profit and Loss Adjustment A/c 5,700
(Being loss on Adjustment)

(b). Directly in Partners’ Capital Accounts

Statment Showing Net Effect of Considering Past Adjustments
Amount Amount Amount Total
Details Mohan ₹ ₹ Amount
₹ Vijay Anil ₹
(i) Amount which should have been credited 2,700 (Cr.) 2,100 (Cr) 1,500 (Cr.) 5,200 (Cr.)
as interest on capital
(ii) Amount which should have been debited 250 (Dr.) 200 (Dr.) 150 (Dr.) 600 (Dr.)
as interest on drawings
(iii) Total 2,450 (Cr.) 1,900 (Cr) 1,350 (Cr.) 5,700 (Cr.)
(iv) Amount actually credited 1,900 (Dr.) 1,900 (Dr.) 1,900 (Dr.) 5,700 (Dr.)
by way of share of profit
(₹ 5,700 divided in the ratio 1:1:1)
(v) Difference between (iii) and (iv) Cr. 550 – Dr. 550 –
(Net Effect) Short Excess

Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Anil’s Capital A/c Dr. 550
To Mohan’s Capital A/c 550
(Being adjustment to profit for omission of interest on capital, interest on
drawings)

Working Notes:
As the profit sharing ratio is not provided, we would assume that the profits are shared equally among the three
partners i.e. in the ratio 1:1:1
Profit Sharing
Mohan = ₹ 24, 000 × 1 ​

3
= ₹ 8,000
Vijay 1
= ₹ 24, 000 ×
​

3
= ₹ 8,000
Anil 1
= ₹ 24, 000 ×
​

3
= ₹ 8,000
Interest on Capital
Mohan = ₹ 27, 000 × 10 ​

100
= ₹ 2,700
Vijay 10
= ₹ 21, 000 ×
​

100
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= ₹ 2,100
Anil 10
= ₹ 15, 000 ×
​

100
= ₹ 1,500
Total Interest on Capital = ₹ 2,700 + ₹ 2,100 + ₹ 1,500
= ₹ 6,300
Total Interest on Drawings = ₹ 250 + ₹ 200 + ₹ 150
= ₹ 600
Profit To Be Adjusted
Add: Interest on Capital ₹ 6,300
Less: Interest on Drawings (₹ 600)
₹ 5,700
Share of Loss in Profit:
Mohan = ₹ 5, 700 × 1 ​

3
= ₹ 1,900
Vijay 1
= ₹ 5, 700 ×
​

3
= ₹ 1,900
Mohan = ₹ 5, 700 × 1 ​

3
= ₹ 1,900

···

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43. Anju, Manju and Mamta are partners whose fixed capitals were ₹ 10,000, ₹ 8,000 and ₹ 6,000,
respectively. As per the partnership agreement, there is a provision for allowing interest on capitals
@ 5% p.a. but entries for the same have not been made for the last three years. The profit sharing ratio
during there years remained as follows:
Year Anju Manju Mamta
2014 4 3 5
2015 3 2 1
2016 1 1 1
Make necessary and adjustment entry at the beginning of the fourth year i.e. April 2015 April 2017.
The necessary adjustment entries can be made in two ways.
(a) Through Profit and Loss Adjustment Account
(b) Directly in Partners’ Capital Accounts
(a). Through Profit and Loss Adjustment Account
Journal
Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Profit and Loss Adjustment A/c Dr. 3,600
To Anju’s Capital A/c 1,500
To Manju’s Capital A/c 1,200
To Mamta’s Capital A/c 900
(Being Interest on Capital for 3 years)
Anju’s Capital A/c Dr. 1,400
Manju’s Capital A/c Dr. 1,100
Mamta’s Capital A/c Dr. 1,100
To Profit and Loss Adjustment A/c 3,600
(Being loss on Adjustment)

(b). Directly in Partners’ Capital Accounts

Statment Showing Net Effect of Considering Past Adjustments
Amount Amount Amount Total
Details Anju ₹ ₹ Amount
₹ Manju Mamta ₹
(i) Amount which should have been credited 1,500 (Cr.) 1,200 (Cr) 900 (Cr.) 3,600 (Cr.)
as interest on capital
(ii) Amount actually credited 1,400 (Dr.) 1,100 (Dr.) 1,100 (Dr.) 3,600 (Dr.)
by way of share of profit
(vii) Difference between (iv) and (v) Cr. 100 Cr. 100 Dr. 200 –
(Net Effect) Short Short Excess

Journal
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Debit Credit
Date Particulars L.F. Amount Amount
₹ ₹
Mamta’s Capital A/c Dr. 200
To Anju’s Capital A/c 100
To Manju’s Capital A/c 100
(Being adjustment to profit for omission of interest on capital)

Working Notes:
Interest on Capital (Yearly)
Anju 5
= ₹ 10, 000 ×
​

100
= ₹ 500
Manju 5
= ₹ 8, 000 ×
​

100
= ₹ 400
Mamta 5
= ₹ 6, 000 ×
​

100
= ₹ 300
Total Interest on Capital = ₹ 500 + ₹ 400 + ₹ 300
= ₹ 1,200
Interest on Capital for 3 years
Anju = ₹ 500 × 3
= ₹ 1,500
Manju = ₹ 400 × 3
= ₹ 1,200
Mamta = ₹ 300 × 3
= ₹ 900
Total = ₹ 1,500 + ₹ 1,200 + ₹ 900
= ₹ 3,600
Loss on Profit Sharing (in 2014)
Anju 4
= ₹ 1, 200 ×
​

12
= ₹ 400
Manju 3
= ₹ 1, 200 ×
​

12
= ₹ 300
Mamta 5
= ₹ 1, 200 ×
​

12
= ₹ 500
Loss on Profit Sharing (in 2015)
Anju 3
= ₹ 1, 200 ×
​

6
= ₹ 600
Manju 2
= ₹ 1, 200 ×
​

6
= ₹ 400
Mamta 1
= ₹ 1, 200 ×
​

6
= ₹ 200
Loss on Profit Sharing (in 2016)

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Anju 1
= ₹ 1, 200 ×
​

3
= ₹ 400
Manju 1
= ₹ 1, 200 ×
​

3
= ₹ 400
Mamta 1
= ₹ 1, 200 ×
​

3
= ₹ 400
Total Loss on Profit (for 3 years)
Anju = ₹ 400 + ₹ 600 + ₹ 400
= ₹ 1,400
Manju = ₹ 300 + ₹ 400 + ₹ 400
= ₹ 1,100
Mamta = ₹ 500 + ₹ 200 + ₹ 400
= ₹ 1,100

Class 12 Business Studies

1. Nature and Significance of Management:

2. Principles of Management:

3. Business Environment:

4. Planning:

5. Organising:

6. Staffing:

7. Directing:

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8. Controlling:

9. Financial Management:

10. Marketing:

11. Consumer Protection:

Class 11 Business Studies

1. Business, Trade and Commerce:

2. Forms of Business Organisation:

3. Private, Public and Global Enterprises:

4. Business Services:

5. Emerging Modes of Business:

6. Social Responsibilities of Business and Business Ethics:

7. Formation of a Company

8. Sources of Business Finance:

9. Small Business and Entrepreneurship:

10. Internal Trade:

11. International Business:

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