Abdul, Kadir and Kasim were partners in a firm supplying food items. They were sharing profits in the ratio of 5:3:2. Their capitals on 1st April, 2010 were Rs 1,00,000, Rs 1,50,000 and Rs 3,00,000 respectively. After the floods in Uttaranchal, all partners decide to personally help the flood victims. For this Abdul withdrew Rs 20,000 from the firm on 1st September 2012, Kadir instead of withdrawing cash from the firm took some food items amounting to Rs 24,000 from the firm and distributed to the flood victims. On the other hand, Kasim withdrew Rs 1,00,000 from his capital on 1st January 2013 and provided a Mobile Medical Van for medical facilities in the flood affected area. The partnership deep provides for charging interest on drawings @ 6% p.a. After the Final Accounts were prepared it was discovered that interest in drawings had not been charged. Give the necessary adjusting journal entry and show the working notes clearly. Also, state any two values that the partners wanted to communicate to the society.
Anwar, Biswas and Divya are partners in a firm. On 1st April 2011 their capital accounts stood at Rs 8,00,000, Rs 6,00,000 and Rs 4,00,000 respectively. They shared profits and losses in the proportion of 3: 2: 1. Partners are entitled to interest on capital @ 6% per annum and salary to Biswas and Divya @ 4,000 per month and Rs 6,000 per quarter respectively as per the provisions of the partnership deed. Biswas's share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of Rs 82,000 p.a. Any deficiency arising on that account shall be met by Divya. The profits of the firm for the year ended 31st March 2012 amounted to Rs 3,120,000. Prepare Profit & Loss Account for the year ended on 31st March 2012.
Kamal and Vimal were partners in firm sharing profits in the ratio of 3:2. Ghosh was admitted as a new partner for `1/5` th share in the profits. On Ghosh's admission, the balance sheet of the firm showed a credit balance of Rs 10,000 in its Profit and Loss Account which was debited by the accountant of the firm in the accounts of Kamal and Vimal. Did the accountant give correct treatment to the balance of Profit and Loss Account? If 'yes' give the reason and if 'not' give the correct treatment.