Accounting for Partnership Firms:Fundamentals-Part 5(Past Adjustments)Class 12 CBSE/ISC

Past Adjustments in Partnership Accounts | Class 12 Accountancy | CBSE & ISC In this video, we dive deep into one of the most important and frequently asked topics in Board Examinations: Past Adjustments. If you often find yourself confused by rectification entries after the accounts are closed, this step-by-step tutorial is for you! What you will learn in this video: Concept of Past Adjustments: Understanding why and when we need to rectify errors in Profit & Loss Appropriation and Partners' Capital Accounts [00:12]. Step 1: The Adjustment Table: How to record omissions like Interest on Capital, Salary, and Interest on Drawings correctly [03:50]. Step 2: Correcting Profits: A walkthrough of calculating the actual divisible profit using a revised P&L Appropriation account [07:21]. Step 3: Finding the Net Effect: Identifying which partners were over-credited or under-credited to find the final adjustment amounts [09:06]. Step 4: The Final Entry: Passing the single rectification journal entry that fixes all errors [10:40]. Pro-Tip: Opening vs. Closing Capital: Learn the crucial difference between calculating interest on opening capital versus closing capital and how to derive the opening balance when it's not given [12:30]. Watch the full video to master your basics and score full marks in this topic! #Accountancy #Class12 #PastAdjustments #PartnershipAccounts #SethiClasses #Commerce #CBSEBoard #ISCBoard