Commerce Wallah

On 31st March, 2023, after the closing of the accounts, the Capital Accounts of  P, Q  and  R  stood in the books of the firm  at   ₹ 40,000;   ₹ 30,000 and   ₹ 20,000 respectively. Subsequently, it was noticed that interest on capital @ 5% had been omitted. Profit for the year ended 31st March, 2023   was   ₹ 60,000 and the partners' drawings had been  P  –   ₹ 10,000,  Q  –   ₹  7,500 and  R  –   ₹  4,500. Profit-sharing ratio of  P, Q  and  R  is  3 :  2 : 1.                                                     👇 Answer👇

  A, B and C were partners. Their fixed capitals were  ₹ 60,000,  ₹ 40,000 and  ₹ 20,000 respectively. Their profit sharing ratio was  2 : 2 : 1. According to the Partnership Deed, they were entitled to interest on capital @ 5% pa. In addition, B was also entitled to draw a salary of  ₹ 1,500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capital, but before charging the salary payable to B. The net profits for the year,  ₹ 80,000, were distributed in the ratio of their capitals without providing for any of the above adjustments. Showing your workings clearly, pass the necessary adjustment entry.                                                                   👇 Answer👇

  Profit earned by a partnership firm for the year ended 31st March, 2023 were distributed equally between the partners – Pankaj and  Anu  – without allowing interest on capital. Interest due on capital was Pankaj  – ₹ 3,000 and  Anu  –   ₹ 1,000. Pass necessary adjustment entry.                                                                              👇 Answer👇

Ram, Mohan and  Sohan  were partners sharing profits in the ratio of 2:1:1. Ram withdrew  ₹ 3,000 every month and Mohan withdrew  ₹ 4,000 every month. Interest on drawings @ 6% p.a. was charged, whereas the partnership deed was silent about interest on drawings. Showing your working clearly, pass the necessary adjustment entry to rectify the error. 👇 Answer👇

 Do you like finance ?  Do your mind gets tickled whenever you hear about business , sales or profit?  If yes , then we are bit similar. Hello , I am Abhishek keshri , currently in kirori mal college, Delhi University ,pursuing B.com(Hons)  along with chartered accountancy course . I belong to a family where Business is the primary source of income , so I used to visit at the place of business and loves to deal with customers ,  that had generated a lot of interest in finance and commerce .  When I become senior student , i was also inclined towards science , like everyone (as society places it superior to everything) . So when the result of standard 10th was declared , i got a whopping 97 and 99 marks in science and maths respectively , which acted as a catalyst in compelling me to take science in class 11th , so I decided after discussing with my father that I will go for science background and will prepare jee mains & advance to get admission in...

  Simrat and Bir are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2023 after closing the books of account, their Capital Accounts stood at   ₹ 4,80,000 and     ₹6,00,000 respectively. On 1st May, 2022, Simrat introduced an additional capital of     ₹1,20,000 and Bir withdrew     ₹60,000 from his capital. On 1st October, 2022, Simrat withdrew     ₹2,40,000 from her capital and Bir introduced   ₹ 3,00,000. Interest on capital is allowed at 6% p.a. Subsequently, it was noticed that interest on capital @ 6% p.a. had been omitted. Profit for the year ended 31st March, 2023 amounted to     ₹2,40,000 and the partners' drawings had been: Simrat –   ₹ 1,20,000 and Bir –   ₹ 60,000. Compute the interest on capital if the capitals are (a) fixed, and (b) fluctuating.   👇 Answer👇

Ram, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their capitals were fixed at   ₹ 3,00,000,     ₹1,00,000,     ₹2,00,000. For the year ended 31st March, 2023, interest on capital was credited to them @ 9% instead of 10% p.a. The profit for the year before charging interest was     ₹2,50,000. Show your working notes clearly and pass necessary adjustment entry. 👇 Answer👇