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15. On 1st April 2019 , the balances in the Capital Accounts of A,B and C were Rs 1,64,000,Rs 1,34,000 and Rs 1,18,000 respectively. Subsequently it was discovered that the interest on capital and drawings had been omitted. During the year, A and B each withdrew a total sum of Rs 24,000 in equal installmentsin the beginning of each month and C withdrew a total sum of Rs 48,000 in equal instalments at the end of each month. The interest on drawings was to be charged @ 5% p.a. and interest on Capital was to be allowed @10% p.a. The profit sharing ration among the partners was 2:1:1. Showing your working notes clearly, pass the necessary rectifying entry. |
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Answer» INSTALMENTS at the END of each month. The interest on DRAWINGS was to be charged @ 5% p.a. and interest on Capital was to be ALLOWED @10% p.a. The PROFIT sharing ration among the partners |
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