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प्रश्न
A, B and C were partners in a firm. Their capitals were A Rs 30,000, B Rs 20,000 and C Rs 10,000 respectively. According to the partnership deed they were entitled to an interest in capital @ 5% p.a. In addition B was also entitled to draw a salary of Rs 500 per month. C was entitled to a commission of 5% on the profit after charging the interest on capital, but before charging the salary payable to B. The net profits for the year were Rs 30,000 distributed in the ratio of their capitals without providing for any of the above adjustment. The profits were to be shared in the ratio 2 : 1: 2.
Pass the necessary adjustment entry showing the working clearly.
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उत्तर
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Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
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|
|
A’s Current A/c |
Dr. |
|
5,640 |
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|
|
To B’s Current A/c |
|
|
930 |
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|
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To C’s Current A/c |
|
|
4,710 |
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(Adjustment entry passed) |
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*Partners’ capital is assumed to be fixed.
Notes
Calculation of Interest on Capital
Interest on A's Capital=`30,000xx5/100="Rs" 1,500`
Interest On B's Capital=`20,000xx5/100= "Rs" 1,000`
Interest on C's Capital=`10,000xx5/100="Rs" 500`
Total Amount Of Intrest=`1,500+1,000+500="Rs" 3,000`
Salary to B (Rs 500 × 12) = Rs 6,000
Calculation of Commission to C
Commission to C = 5% on Net Profit after charging Interest on Capital
Net Profit after charging Interest on Capital = 30,000 − 3,000 = Rs 27,000
∴ Commission To `C=27,000xx5/100="Rs" 1,350`
Calculation of Profit available for Distribution
Profit available for distribution = Net Profit − Interest on Capital − Salary to B − Commission to C
= 30,000 − 3,000 − 6,000 − 1,350 = Rs 19,650
Right Distribution of available Profit (in 2 : 1 : 2)
A's Profit Shares=`19,650xx2/5="Rs"7,860`
B's Profit Share=`19,650xx1/5="Rs" 3,930`
C's Profit Share=` 19,650xx2/5= "Rs" 7,860`
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Statement Showing Adjustment |
||||
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Particulars |
A |
B |
C |
Total |
|
|
Interest on Capital to be credited (WN 1) |
1,500 |
1,000 |
500 |
3,000 |
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|
Salary to B to be credited (WN 2) |
– |
6,000 |
– |
6,000 |
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|
Commission to C to be credited (WN3) |
– |
– |
1,350 |
1,350 |
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|
Right Distribution of Profit (WN4) |
7,860 |
3,930 |
7,860 |
19,650 |
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Wrong Distribution of Profit (in capital ratio i.e. 3 : 2 : 1) |
(15,000) |
(10,000) |
(5,000) |
(30,000) |
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|
Net Effect |
5,640 (Dr.) |
930 (Cr.) |
4,710 (Cr.) |
NIL |
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