Class XII Accountancy

Johan, Micky and Peter were partners in a firm. They had no partnership deed. They have been in

business for 4 years and their Profit and loss for this period was: Year ended 31st March 2004 Rs.

78,000, 31st March 2005 Rs.1,08,000, 31st March 2006 Rs.36,000 (Loss), 31st March 2007

Rs.1,50,000, During the year 2007-08, they agreed to share profits and losses in the ratio of 2 : 2 :1

with retrospective effect from the year 2003-04. It was also decided that an interest (charge) of 5%

p.a. was to be provided on capitals (fixed). Their capitals were 1,60,000, 1,20,000 and 1,20,000

respectively. Pass necessary adjustment entry also show your workings clearly.