# DK Goel Solutions Vol 1 Chapter 1 Accounting for Partnership Firms - Fundamentals

DK Goel Accountancy Class 12 Solutions Chapter 1 Accounting for Partnership Firms – Fundamentals which is outlined by expert Accountancy teachers from the latest version of DK Goel Accountancy Class 12 textbook solutions. We at BYJUâ€™S provide DK Goel Solutions to assist students to comprehend all the theories in particular. There are numerous concepts in Accountancy, but the concepts of Admission of a partner, Accounting Ratios and Cash Flow Statement (As per AS – 3 Revised) is required.

## DK Goel Solutions Class 12 – Chapter 1 – Part A

Question 1

A and B are partners in a farm. A is entitled to a salary of â‚¹15,000 p.m and a commission of 10% of net profit before charging any commission. B is entitled to a commission of 10% of net profit after charging his commission. Net profit till 31st March 2018 was â‚¹4,40,000. Show the distribution of profit.

Solution:

 Dr. Profit and Loss of Appropriate Account Till 31st March, 2018 Cr. Particulars â‚¹ Particulars â‚¹ To Aâ€™s Salary 1,80,000 By Profit & Loss A/c (Net Profit) 4,40,000 To Aâ€™s Commission (â‚¹4,40,000 x 10/100) 44,000 To Bâ€™s Commission (â‚¹4,40,000 x 10/110) 40,000 To Profit transferred to: Aâ€™s Capital A/c 88,000 Bâ€™s Capital A/c 88,000 1,76,000 4,40,000 4,40,000

Question 2

X, Y, and Z are partners sharing profits and losses in the ratio 3:2:1. After the final accounts have been prepared, it discovered that interest in [email protected]% p.a had not been taken into consideration. The drawings of the partners were: X â‚¹1,50,000, Y â‚¹1,26,000 , Z â‚¹1,20,000. Prepare a journal entry.

Solution:

Calculation of Interest on Drawings:

Since the date of the drawing is not given, interest will be charged for 6 months.

X: 5% on â‚¹1,50,000 for 6 months = â‚¹ 3,750

Y: 5% on â‚¹1,26,000 for 6 months = â‚¹ 3,150

Z: 5% on â‚¹1,20,000 for 6 months = â‚¹ 3,700

â‚¹ 9,900

 Table Showing Adjustments X (â‚¹) Y (â‚¹) Z (â‚¹) Total Interest on Drawings Division of â‚¹5,400 in 3:2:1 Dr. Dr. 2,550 2,700 1,850 1,850 1,000 900 5,400 5,400 Difference Cr.150 Dr. 50 DR.100 ——–

Hence, the adjusting entry will be:

 Journal Entry Date Particulars L.F Dr. â‚¹ Cr. â‚¹ Yâ€™s Capital A/c Zâ€™s Capital A/c Dr. Dr. 50 100 To Xâ€™s Capital A.c (Adjustment in respect of interest on drawing omitted in previous yearâ€™s account) 150

Question 3

Akshara and Samiksha are partners. Business is carried from the property owned by Akshara on a monthly rent of â‚¹5,000. Akshara is entitled to a salary of â‚¹40,000 per quarter and Samiksha get a commission of 4% on net sales, which during the year was â‚¹5,00,000. Net profit till 31st March, 2018 before providing for rent was â‚¹6,00,000

Prepare a profit and loss appropriate account till 31st March 2018.

Solution:

 Dr. Profit and Loss Appropriate Account Till 31st March, 2018 Cr. Particulars â‚¹ Particulars â‚¹ To Salary to Akshara To commission to Samiksha 1,60,000 2,00,000 By Profit & Loss A/c (Net Profit) ( â‚¹6,00,00 – â‚¹60,000) 5,40,000 To Profit transferred to: Aksharaâ€™s Capital A/c 90,000 Samikshaâ€™s Capital A/c 90,000 1,80,000 5,40,000 5,40,000

*Rent paid to a partner is a charge against profits. It will be debited to the Profit & Loss Account.

Question 4

Ravi and Mohan were partners in a firm sharing profits in the ratio of 7:5. Their respective fixed capitals were Ravi â‚¹10,00,000 and Mohan â‚¹7,00,000. The partnership deed provided for the following:

1. Interest on Capital @ 12% pa.
2. Raviâ€™s salary â‚¹6,000 per month and Mohanâ€™s salary â‚¹60,000 per year.

The profit till March 31-3-2019 was â‚¹5,04,000 which was distributed equally, without providing for the above. Record an adjustment entry.

Solution:

 Statement of Adjustments Ravi (â‚¹) Mohan (â‚¹) Total (â‚¹) Interest on Capitals Cr. 1,20,000 84,000 2,04,000 Salary Cr. 72,000 60,000 1,32,000 Profit left* after authorizing interest on capital and salary will be â‚¹5,04,000 – â‚¹2,04,000 – â‚¹1,32,000 = â‚¹1,68,000. The profit sharing ration will be divided into, i.e, 7:5 98,000 70,000 1,68,000 Net amount that should have been received Cr. 2,90,000 2,14,000 5,04,000 Less: Profit already distributed equally Dr. 2,52,000 2,52,000 5,04,000 Net Effect (Cr.) 38,000 (DR.) 38,000 ———–

*Remaining profit will have to be calculated when profit has already been distributed in wrong profit sharing ratio.

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 DK Goel Accountancy Solutions Class 12 â€“ Part A (Chapter wise) Chapter 2 Change in Profit Sharing Ratio Among the Existing Partners Chapter 3 Admission of a partner Chapter 4 Retirement or Death of a Partner Chapter 5 Dissolution of a Partnership Firm

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#### 1 Comment

1. Jaikee tyagi

Thank you