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Seems, Tanuja and Tripti Were Partners in a Firm Trading in Garments. 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. - Accountancy

Seems, Tanuja and Tripti were partners in a firm trading in garments. They were sharing profits in the ratio of 5:3:2. Their capitals on 1st April, 2012 were Rs 3,00,000, Rs 4,00,000 and Rs 8,00,000 respectively. After the flood in Uttarakhand, all partners decided to help the flood victims personally. For this Seema withdrew Rs 20,000 from the firm of 15th September 2012. Tanuja instead of withdrawing cash from the firm took garments amounting to Rs 24,000 from the firm and distributed those to the flood victims. On the other hand, Tripti withdrew Rs 2,00,000 from her capital on 1st January 2013 and provided a mobile medical van 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.

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Solution

Journal Entries
Date Particulars L.F.

Debit

Rs 

Credit

Rs

 

Tripti’s Capital A/c                Dr.

    To Seema’s Capital A/c

    To Tanuja’s Capital A/c

Being interest on drawings has been changed, now adjusted)

 

2,114

 

 

 

 

1,565

549

 

Adjusting Table:

 

Particular Seema Tanuja Tripti Total

Interest on Drawings

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

Difference

650

2,215

1,565 (Cr.)

780

1,329

549 (Cr.)

3,000

886

2,114 (Dr.)

4,430

4,430

Nil

Working Notes:
Calculation of Interest Drawings:

Interest in Seema's Drawings =  `20000 xx 6/100 xx 6.5/12 = 650`

Interest on Tanjua's Drawings = `24000 xx 6/100 xx 6.5/12 = 780`

Interest on Tripti's Drawings = `200000 xx 6/100 xx 3/12 = 3000`

Values involved in the above scenario are as follows:

i. Duty for Nation
ii. Upliftment of Victims

Concept: Admission of a Partner - Adjustment of Capitals
  Is there an error in this question or solution?
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