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Answer:- Past adjustments refers to adjustments made to rectify the error of incorrect distribution of profits or error in respect of Interest on Capital/Drawings of a partner, salary or commission to a partner, sharing of profits.

Ans – d) Explanation a) Interest on the loan of the partner to the firm is charged @ 6% p.a. in the absence of the partnership Deed. b) Interest on the Partner’s Drawings is not charged in the absence of…

Ans – d) Explanation:-

a) Ans = ii) Explanation:- Net Profit = (Profit – Rent on Pixie’s Premises) – Interest on Pixie’s Loan Net Profit = 1,21,000 – 12000 * 6% * 6/12 Net Profit = 1,21,000 – 360 Net Profit = ₹ 1,20,640…

Ans – d) Explanation:-

Ans – b) Explanation

Ans – b) Explanation:- Profit after interest = 1,20,000 – 15,000 – 10,000 – 5,000 = ₹ 90,000 Asma’s Share in Profit = 90,000 * 1/6 = ₹ 15,000 Deficiency to be charged from Gautam = Asma Guaranteed Profit –…

Ans – b) Explanation:- 1. Calculation of Alia’s Interest on Drawings Average Month = 12 + 1/2 = 6.5 Month Interest on Alia’s Drawings = 20000 * 12 * 8% * 6.5/12 = ₹ 10,400 2. Calculation of Karan’s Interest…

Ans – c) Explanation Average Month = 7.5 + 1.5/2 = 4.5 Months Interest on Y’s Drawings = 36,000 * 3 * 10% * 4.5/12 = ₹ 4050

Ans – d) Explanation Salary due to a partner of the firm is the appropriation and is recorded in the profit and Loss Appropriation Account. On the other hand, interest on a loan of the partner, rent to the partner,…