Accountancy Class-XII

Part : A
Chapter 1 : Accounting for Partnership Firms Fundamentals
Lecture 1.2 : Past Adjustments

Assignment
Short Answer Type Questions. (3 marks each)
1. Xing, Ying and Zing were Partners with capital of `2,00,000, `1,60,000 and `1,20,000 respectively
on April 1, 2014. They shared Profits as 5 : 3 : 2. The Net Profit for the year ending March 31, 2015
was `2,40,000 which was wrongly shared equally. It was also noted later on that zing was to be
allowed a salary of `2,000 p.a. which was not allowed. Pass necessary adjustment entry to correct
the above error.
[Ans. : Xing (Cr.) = `34,000; Ying (Dr.) = `11,600 and Zing (Dr.) = `22,400]
2. Priyanka and Parineeti shared profits in the ratio 7 : 3 for the year ended December 31, 2014 which
was `24,000. It was discovered later that according to partnership deed profit has to be shared
equally. Give an adjustment entry to rectify the error.
[Ans. : Prinanka (Dr.) = `4,800; Parineeti (Cr.) = `4,800]
3. Black, Blue and Red share profit in the ratio of 2 : 3 : 5. They earned a profit of `3,00,000 for the
year ended 31st March, 2014, The profit was by mistake distributed among Black, Blue and Red in
the ratio of 3:2:1. Pass necessary entry to rectify the error.
[Ans. : Black (Dr.) = `90,000 ; Blue (Dr.) = `10,000 ; Red (Cr.) = `1,00,000]
4. Sikha, Sumit and Swati are Partners in a firm. They contributed `75,000 each as capital three years
ago. At that time Swati agreed to look after the business as Sikha and Sumit were busy. The profits
for the past three years were `22,500, `15,000 and `30,000 respectively. While going through the
books of accounts, Sikha noticed that Profit had been distributed in 1:1:2 ratio. When she enquired
from Swati about this, Swati answered that since she looked after the business she should get more
profit. Sikha disagreed and it was decided to distribute profits equally with retrospective effect for
the last three years.
(i) You are required to make necessary correction in the books of accounts of Sikha, Sumit and
Swati by passing an adjustment entry.
(ii) Identify the value which is being ignored by Swati.
[Ans. : Sikha (Cr.) = `5,625 ; Sumit (Cr.) = `5,625 ; Swati (Dr.) = `11,250]
5. Leonard and Howard were partners in a firm sharing profits in the ratio of 7 : 5. The partnership
deed provided for salary to Leonard @ `6,000 p.m. and to Howard @ `60,000 p.a. The Profit for
the year ended 31st March, 2014 was `5,04,000 which was distributed equally, without providing
for Salary. Pass an adjustment entry.
[Ans. : Leonard (Cr.) = `37,000 ; Howard (Dr.) = `37,000]
6. R, S, P and V are partners sharing profits and losses in the ratio of 4 : 3 : 3 : 2. Their respective
fixed capitals on 31st March, 2015 were `60,000; `90,000; `1,20,000 and `90,000 respectively. After

GOYAL BROTHERS PRAKASHAN

preparing the final accounts for the year ended 31st march, 2015, it was discovered that interest on
capital @ 12% p.a. was not allowed and interest on drawings amounting to `2,000; `2,500; `1,500
and `1,000 respectively was also not charged. Pass the necessary adjustment journal entry showing
your workings clearly.
[Ans. R (Dr.) = `6,867; S (Dr.) = `750; V (Cr.) = `3,850; and P (cr.) = `3,767]

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