Question

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 1^st April, 2012 were Rs 4,00,000, Rs 5,00,000 and 9,00,000 respectively. After the floods in Uttranchal, all partners decided to help the flood victims personally.

For this Anil withdrew Rs 30,000 from the firm in 30th September, 2012. Vineet instead of withdrawing cash from the firm took some food items amounting to Rs 25,000 from the firm and distributed those to flood victims. On the other hand, Vipul withdrew Rs 2,50,000 from his capital on 1^st January, 2013 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. Give the necessary adjusting entry and show the working notes clearly. Also state any two values that the partners wanted to communicate to the society.

Answer 1

Journal Entry
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
		Anil’s Capital A/c	Dr.		75
		Vineet's Capital A/c	Dr.		255
		To Vipul’s Capital A/c				330
		(Omission of interest on drawings, now adjusted)

Particulars	Anil	Vineet	Vipul	Total
Interest on Drawings (Dr.)	900	750	-	1,650
Profit of Rs 1,650 shared in ratio 5:3:2  (Cr.)	825	495	330	1,650
Difference	75 (Dr.)	255 (Dr.)	330 (Cr.)	Nil