CBSE XII COMPILED BY SUDHIR SINHA

ACCOUNTANCY FUNDAMENTALS OF PARTNERSHIP

REVISION WORKSHEET
PAST ADJUSTMENT – CBSE QUESTION BANK

1 P, Q and R were partners with fixed capital of ₹40,000, ₹32,000and ₹24,000. After
distributing the profit of ₹48,000 for the year ended 31st March 2022 in their
agreed ratio of 3:1:1, it was observed that:
(1) Interest on capital was provided at 10% p.a. instead of 8% p.a.
(2) Salary of ₹12,000 was credited to P instead of Q.
You are required to pass a single journal entry in the beginning of the next year to
rectify the above omissions.
OR
Cheese and Slice are equal partners. Their capitals as on April 01, 2022 were
₹50,000 and ₹1,00,000 respectively. After the accounts for the financial year ending
March 31, 2023 have been prepared, it is observed that interest on capital @ 6%
per annum and salary to Cheese @ ₹5,000 per annum, as provided in the
partnership deed has not been credited to the partners’ capital accounts before
distribution of profits.
You are required to give necessary rectifying entries using P&L adjustment account.
[CBSE SAMPLE PAPER 2023-24, 3 MARKS]

2 Sharma and Verma were partners in a firm sharing profits and losses in the ratio of
3:2. Their fixed capitals were ₹14,00,000 and ₹10,00,000 respectively. The
partnership deed provided for the following:
(i) Interest on capital @ 10% per annum.
(ii) Interest on drawings @ 12% per annum.
During the year ended 31.03.2023, Sharma withdrew ₹2,00,000 and Verma
withdrew ₹1,00,000. After preparing the accounts for the year ended 31.03.2023, it
was realised that interest on capital was not allowed and interest on drawings was
not charged.
Showing your working notes clearly pass necessary journal entries in the books of
the firm to rectify the above error. [CBSE (Comptt Exam 2022-23, 3 MARK)]

3 Ananya, Bhavi and Chandni were partners in a firm with capitals of ₹3,00,000,
₹2,00,000 and ₹1,00,000 respectively.
According to the provisions of the partnership deed:
(i) Ananya and Chandni were each entitled to a monthly salary of ₹1,500.
(ii) Bhavi was entitled to a salary of ₹4,000 per annum.
The profit for the year ended 31st March, 2022, ₹80,000 was divided between the
partners in their profit-sharing ratio of 3:3:2 without providing for the above
adjustments.
Pass the necessary adjustment entry to rectify the above omissions in the books of
the firm. Show your working notes clearly.
[CBSE Main Exam 2022-23, Zone 4, 3 MARK)]

4 Raman, Manan and Naman were partners sharing profit in the ratio of 2:1:1.
Raman withdrew ₹3,000 every month and Manan withdrew ₹4,000 every month.
Interest on drawings @ 6% p.a. was charged whereas the partnership deed was
silent about interest on drawings.
Showing your working clearly, pass the necessary adjustment entry to rectify the
error. [CBSE Main Exam 2022-23, Zone 3, 3 MARK)]
 CBSE XII COMPILED BY SUDHIR SINHA
ACCOUNTANCY FUNDAMENTALS OF PARTNERSHIP

5 P, Q and R were partners in a firm sharing profits and losses in the ratio of 5:3:2.
The partnership deed provides for charging interest on drawings @ 10% p.a. The
drawings of P, Q and R during the year ending 31st March, 2020 amounted to
20,000, ₹30,000 and 50,000 respectively. After the final accounts have been
prepared, was discovered that interest on drawings had not been charged.
Pass the necessary adjustment entry to rectify the omission of interest on drawings.
Also show your working notes clearly.
[CBSE 2020-21/Compartment/ Marks-4]
6 On 31st March, 2019, the balance in the capital accounts of Asha, Nisha and Disha
after making adjustments for profits and drawings were ₹1,50,000, ₹1,20,000 and
₹90,000 respectively. Subsequently, it was discovered that interest on capital and
interest on drawings had been omitted.
The partners were entitled to interest on capital @ 10% p.a. Interest on drawings
was also to be charged @ 10% p.a. The drawings during the year were: Asha
₹50,000, Nisha ₹60,000 and Disha ₹30,000. The net profit for the year ending 31st
March, 2019 amounted to ₹1,00,000. The profit sharing ratio was 2 : 2 : 1.
Pass the necessary adjustment entry. Also show your workings clearly.
[CBSE 2019-20/Compartment/ Marks-4]

7 Ram, Mohan and Sohan were partners sharing profits in the ratio of 2 : 1 : 1. Ram
withdrew ₹3,000 every month and Mohan withdrew ₹4,000 every month. Interest on
drawings @ 6% p.a. was charged, whereas the partnership deed was silent about
interest on drawings.
Showing your working clearly, pass the necessary adjustment entry to rectify the
error. [CBSE 2019-20/Main/ Marks-4]

8. A and B are partners sharing profits and losses in the ratio of 3 : 2. Their capital on
31st March, 2018 after all adjustments stood at ₹1,65,500 and ₹1,27,600
respectively.
Profits amounting to ₹50,000 for the year 2017-18 were distributed after allowing
interest on drawings @ 12% p.a. During the year A withdrew ₹15,000 at the
beginning of every quarter and B withdrew ₹40,000 during the year. Partnership
deed is silent on interest on drawings but provides for interest on Capital @ 5% p.a.
Interest on Capital has not been provided.
Showing your workings clearly, pass the necessary adjustment entry to rectify the
above errors. [CBSE 2019-20/Main/ Zone 4 Marks-4]

9 A, B and C were partners in a firm. On 1st April, 2018, their capitals stood at
₹4,00,000, ₹3,00,000 and ₹2,00,000 respectively. As per the provisions of the
partnership deed
(i) A was entitled to a salary of ₹5,000 per month.
(ii) Partners were entitled to interest on capital @10% p.a.
The net profit for the year ended 31st March, 2019, ₹3,00,000 was divided among
the partners without providing for the above items.
Showing your working clearly, pass an adjustment entry to rectify the above error.
[CBSE 2019-20/Compartment/ Marks-4]

10 Rajiv and Sanjeev were partners in a firm. Their partnership deed provided that the
profits shall be divided as follows:
First ₹20,000 to Rajeev and the balance in the ratio of 4 : 1. The profits for the year
ended 31st March, 2017 were ₹60,000 which had been distributed among the
 CBSE XII COMPILED BY SUDHIR SINHA
ACCOUNTANCY FUNDAMENTALS OF PARTNERSHIP

partners. On 1-4-2016 their capitals were Rajeev ₹90,000 and Sanjeev ₹80,000.
Interest on capital was to be provided @ 6% p.a. While preparing the profit and loss
appropriation interest on capital was omitted.
Pass necessary rectifying entry for the same. Show your workings clearly.
[CBSE 2018-19/Compartment/ Marks-4]

11 Mudit and Uday are partners in a firm sharing profits in the ratio 2 : 3. Their
capital accounts as on April 1, 2015 showed balances of ` 70,000 and ` 60,000
respectively.
The drawings of Mudit and Uday during the year 2015-2016 were ₹16,000 and
₹12,000 respectively. Both the amounts were withdrawn on 1st January 2016. It
was subsequently found that the following items had been omitted while preparing
the final accounts for the year ended 31st March 2016.
(a) Interest on capitals @ 6% p.a.;
(b) Interest on drawings @ 6% p.a.;
(c) Mudit was entitled to a commission of ₹4,000 for the whole year.
Showing you workings clearly pass a rectifying entry in the books of the firm.
[CBSE 2017-18/Compartment/ Marks-6]
 CBSE XII COMPILED BY SUDHIR SINHA
ACCOUNTANCY FUNDAMENTALS OF PARTNERSHIP

SOLUTIONS
1

WORKING NOTES

P Q R TOTAL
Interest on capital (excess to be debited) (Dr.) 800 640 480 1920
1152 384 384 1920
352 256 96
(Cr.) (Dr.) (Dr.)
Salary wrongly credited to be adjusted 12000 12000
(Dr.) (Cr.)
11648 11744 96
(Dr.) (Cr.) (Dr.)

OR

2
Date Particulars L.f Debit Credit
Sharma’s Current A/c Dr. 5,200
To Verma’s Current A/c 5,200
(Being Interest on capital and Interest on drawings
omitted, now rectified)
 CBSE XII COMPILED BY SUDHIR SINHA
ACCOUNTANCY FUNDAMENTALS OF PARTNERSHIP

Analytical table
Sharma Verma Total
Interest on Capital (Cr.) 1,40,000 1,00,000 2,40,000
Interest on Drawings (Dr.) (12,000) (6,000) (18,000)
1,28,000 94,000 2,22,000
Profit to be debited (Dr.) 1,33,200 88,800 2,22,000
Net effect 5,200 5,200
(Dr.) (Cr.)
3
Date Particulars L.f Debit Credit
Bhaví’s Capital A/c Dr. 11,000
To Ananya’s Capital A/c 3,000
To Chandni’s Capital A/c 8,000
(Being adjustment for omission for salary to partners)

Analytical table
Ananya Bhavi’s Chandini Total
Salary to Partners (Cr.) 18,000 4,000 18,000 40,000
Excess of amount to be debited in PSR (15,000) (15,000) (10,000) 40,000
Net effect 3,000 11,000 8,000
(Cr.) (Dr.) (Cr.)
4
Date Particulars L.f Debit Credit
Raman’s Capital A/c Dr. 180
Naman’s Capital A/c 630
To Manan’s Capital A/c 810
(Being adjustment for Interest on Drawings wrongly
charged)

Analytical table
Raman Manan Naman Total
Interest on Drawings wrongly debited 1,080 1,440 2,520
loss to be debited in PSR 1,260 630 630 2,520
Net effect (180) 810 630
(Dr.) (Cr.) (Dr.)

5
Date Particulars L.f Debit Credit
R’s Capital A/c Dr. 1,500
P’s Capital A/c 1,500
(Being adjustment for omission of Interest on Drawings)

Analytical table
P Q R Total
Interest on Drawings (Dr.) (1,000) (1,500) (2,500) (5,000)
Excess of amount to be Cr in PSR 2,500 1,500 1,000 5,000
Net effect 1,500 1,500
(Cr.) (Dr.)
 CBSE XII COMPILED BY SUDHIR SINHA
ACCOUNTANCY FUNDAMENTALS OF PARTNERSHIP

6
Date Particulars L.f Debit Credit
Nisha’s Capital A/c Dr. 2,200
To Asha’s Capital A/c 300
To Disha’s Capital A/c 1,900
(Being Interest on capital and Interest on drawings
omitted, now rectified)

Analytical table
Asha Nisha Disha Total
Interest on Capital (Cr.) 16,000 14,000 10,000 40,000
Interest on Drawings (Dr.) (2,500) (3,000) (1,500) (7,000)
13,500 11,000 8,500 33,000
Profit to be debited (Dr.) (13,200) (13,200) (6,600) (33,000)
Net effect 300 2,200 1,900
(Cr.) (Dr.) (Cr.)

7 Same as solution Q 4

Date Particulars L.f Debit Credit

Ram’s Capital A/c Dr. 180
Sohan’s Capital A/c 630
To Mohan’s Capital A/c 810
(Being adjustment for Interest on Drawings wrongly
charged)

8
Date Particulars L.f Debit Credit
A’s Capital A/c Dr. 140
To B’s Capital A/c 140
(Being Interest on capital and Interest on drawings
omitted, now rectified)

Analytical table
A B Total
Interest on Capital (Cr.) 10,000 7,500 17,500
Interest on Drawings Wrongly debited now credited 4,500 2,400 6.900
14,500 9,900 24,400
Profit to be debited (Dr.) (14,640) (9,760) (24,400)
Net effect 140 140
(Dr.) (Cr.)

Interest on Drawings:
A: 12/100 x ₹60,000 x 7.5/12 = ₹4,500
B: 12/100 x ₹40,000 x 6/12 = ₹2,40
 CBSE XII COMPILED BY SUDHIR SINHA
ACCOUNTANCY FUNDAMENTALS OF PARTNERSHIP

Opening Capital
A B
Capital at the end 1,65,500 1,27,600
Add: Drawing 60,000 40,000
Interest on Drawing 4,500 2,400
Less: Profit (30,000) (20,000)
Opening Capital 2,00,000 1,50,000
Interest on Capital 10,000 7,500

9 Calculation of Interest on capital

A = 30000*5% = 1500
B= 20000*5% = 1000
C= 10000*5% = 500
Salary to B = 500*12=6000
Calculation of C's commission = 30000-3000 = 27000*5/100= 1350
Profits to be distributed= 30000-3000-6000-1350 = 19,650

Date Particulars L.f Debit Credit

A’s Capital A/c Dr. 3,675
To B’s Capital A/c 2,895
To C’s Capital A/c 780
(Being adjustment entry passed)

)
Table Showing Adjustment To be Made

A B C Total
Interest on Capital (Cr.) 1,500 1,000 500 3,000
Salary 6,000 6,000
Commission 1,350 1,350
Profit to be distributed 9,825 5.895 3,930 19,650
11,325 12,895 5,780 30,000
Profit to be debited (Dr.) (15,000) (10,000) (5,000) (30,000)
Net effect 3,675 2,895 780
(Dr.) (Cr.) (Cr.)
 CBSE XII COMPILED BY SUDHIR SINHA
ACCOUNTANCY FUNDAMENTALS OF PARTNERSHIP

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