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P, Q and R were… (Class 12 Accountancy SQP 2023-24, Q18a)

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AccountancyCBSE Class 12 · Sample paper, session 2023-24 · 3 marks · Short answer

CBSE Class 12 Accountancy sample paper 2023-24: question 18(a)

From the official CBSE sample question paper for 2023-24, section A, question 18(a), for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q18(a) · 3 marks · Short answerAccounting for Partnership: Basic Concepts

P, Q and R were partners with fixed capital of ₹40,000, ₹32,000 and ₹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.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Capitals are fixed, so the adjustment goes through current accounts.

Hint 2

Excess interest taken back is profit again, shared 3 : 1 : 1.

Hint 3

Reverse the salary from P and give it to Q.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Adjustment table. Interest was given at 10% instead of 8%, so 2% must be taken back: P ₹ 800, Q ₹ 640, R ₹ 480 (total ₹ 1,920). That ₹ 1,920 becomes profit, shared 3 : 1 : 1 (₹ 1,152, ₹ 384, ₹ 384). The ₹ 12,000 salary is reversed from P and given to Q.

    ParticularsP (₹)Q (₹)R (₹)
    Excess interest on capital taken back (Dr.)800640480
    Salary wrongly credited taken back (Dr.)12,000
    Salary due (Cr.)12,000
    Profit share of ₹ 1,920 (Cr.)1,152384384
    Net effect11,648 (Dr.)11,744 (Cr.)96 (Dr.)
    2 marks

  2. Single rectifying entry (1st April, 2022)

    ParticularsDr. (₹)Cr. (₹)
    P's Current A/c Dr.11,648
    R's Current A/c Dr.96
    To Q's Current A/c11,744
    (Being adjustment for excess interest on capital and salary credited to the wrong partner)
    1 mark

Answer: P Dr. ₹ 11,648 and R Dr. ₹ 96, to Q ₹ 11,744

Where the marks are

  • Adjustment table with net effect (2 marks)
  • Single adjusting entry (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Accounting for Partnership: Basic Concepts, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.