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Anju, Manju and Ruchi Were Partners in a Firm Trading in Medicines. They Were Sharing Profits in the Ratio of 5 : 3: 2. Give the Necessary Adjusting Journal Entry and Show the Working Notes Clearly. Also, State Any Two Values Which the Partners Wanted to Communicate to the Society - CBSE (Arts) Class 12 - Accountancy

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Question

Anju, Manju and Ruchi were partners in a firm trading in medicines. They were sharing profits in the ratio of 5 : 3: 2. Their capitals on 1st April, 2012 were Rs 3,00,000; Rs 5,00,000 and Rs 7,00,000 respectively. After the flood in Uttarakhand; all partners decided to help the flood victims personally. For this Anju withdrew Rs 30,000 from the firm of 1st August 2012. Manju instead of withdrawing cash from the firm took medicines amounting to Rs 25,000 from the firm and distributed those to the flood victims. On the other hand, Ruchi withdrew Rs 1,50,000 from her capital on 1st December;2012 and provided the necessary items of daily use in the flood affected area. 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 journal entry and show the working notes clearly. Also, state any two values which the partners wanted to communicate to the society

Solution

Journal Entries
Date Particulars L.F.

Debit

Rs

Credit

Rs

 

Ruchi’s Capital A/c              Dr.

       To Anju’s Capital A/c

       To Manju’s Capital A/c

(Being interest on drawings has been changed, now adjusted)

 

1,960

 

 

 

 

1,400

560

 

Adjusting Table:

Particular Anju Manju Ruchi Total

Interest on Drawings

Profit of  Rs 770 shared in Ratio 5:3:2(Cr

Difference

1,200

2,600

1,400 (Cr.)

1,000

1,560

560 (Cr.)

3,000

1,040

1,960 (Dr.)

5,200

5,200

Nil

Working Notes:
Calculation of Interest Drawings:

Interest on Anju's Drawings = `30000 xx 6/100 xx 8/12 = 1200`

Interest on Manju's Drawings = `25000 xx 6/100 xx 8/12 = 1000`

Interest on Ruchi's Drawing = `150000 xx 6/100 xx 4/12 = 3000`

Values-Based in the above scenario is as follows:

i. Duty for Nation
ii. Helping the needy

  Is there an error in this question or solution?
Solution Anju, Manju and Ruchi Were Partners in a Firm Trading in Medicines. They Were Sharing Profits in the Ratio of 5 : 3: 2. Give the Necessary Adjusting Journal Entry and Show the Working Notes Clearly. Also, State Any Two Values Which the Partners Wanted to Communicate to the Society Concept: Admission of a Partner - Adjustment of Capitals.
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