Questions relating to Adjustment of Closed Partnership accounts. (Pass adjustment entry).

1. Profit ₹30,000 distributed among A, B, C in the ratio 3:2:1 instead of 1:2:3(Answer: A’s Capital a/c Dr. ₹10,000, B’s Capital a/c Cr. ₹10,000).
2. Profit ₹60,000 distributed among A, B, C equally instead of 1:2:3 (Answer: A’s Capital a/c Dr.10, 000, C’s Capital a/c Cr. ₹10,000).
3. A, B, C decided to change their Profit sharing ratio from 2:1:2 to equal ratio with retrospective effect from the year 2009.Profits for the years 2009, 2010, 2011 earned by them amounted to ₹50,000, ₹70,000 and ₹90,000 respectively. (Answer: A’s Capital a/c Dr.14, 000, C’s Capital a/c Dr. ₹14,000 and B’s Capital a/c Cr.₹28,000).
4. P, Q and R have their capitals ₹3, 00,000, ₹2, 00,000 and ₹2, 00,000 respectively. After the distribution of year’s profit it was discovered that Interest on Capital @6% was not allowed as provided in the partnership deed (Answer: Q’s Capital a/c Dr.2, 000, R’s Capital a/c Dr. ₹2,000 and P’s Capital a/c Cr.₹4,000).
5. X, Y and Z have their capitals ₹2, 00,000, ₹3, 00,000 and ₹4, 00,000 respectively. After the distribution of year’s profit in the profit sharing ratio 1:3:2 it was discovered that Interest on Capital @6% was not allowed as provided in the partnership deed (Answer: Y’s Capital a/c Dr.9, 000, X’s Capital a/c Cr. ₹3,000 and P’s Capital a/c Cr. ₹6,000).
6. X, Y and Z having capitals of ₹ 80,000, ₹60,000 and ₹40,000 respectively shared profits after allowing Interest on capital @6% instead of @8% (Answer: Z’s capital a/c Dr. ₹400 and X’s capital a/c Cr. ₹400).
7. M, N and O having capitals of ₹ 50,000, ₹40,000 and ₹30,000 respectively shared profits after allowing Interest on capital @10% instead of @8% (Answer: M’s capital a/c Dr. ₹200 and O’s capital a/c Cr. ₹200).
8. P and Q have their capitals ₹80,000 and ₹60,000 respectively. After the distribution of year’s profit in the ratio of 2:3 it was discovered that Interest on Drawings @5% p.a. was not charged as provided in the partnership deed ,their drawings amounted to ₹3,000 and ₹2,000 (Answer: P’s Capital a/c Dr.₹25, Q’s Capital a/c Cr. ₹25 )