InterviewSolution
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A, B and C are partners in a firm. Net profit of the firm for the year ended 31st march, 2018 is ₹ 30,000, which has been duly distributed among the partners, in their agreed ratio of 3 : 1 : 1 respectively. It is discovered on 10th April, 2018 that the undermentioned transactions were not passed through the books of account of the firm for the year ended 31st March, 2018. (a) Interest on Capital @ 6% per annum, the capital of A, B and C being ₹ 50,000; ₹ 40,000 and ₹ 30,000 respectively. (b) Interest on drawings: A ₹ 350; B ₹ 250; C ₹ 150. (c) Partners’ Salaries: A ₹ 5,000; B ₹ 7,500. (d) Commission due to A (for some special transaction) ₹ 3,000. You are required to pass a Journal entry, which will not affect Profit and Loss Account of the firm and rectify the position of partners. |
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Answer» rnal and the adjustment entry has been calculated below:EXPLANATION:Calculation of Interest on Capital Interest on A's Capital Interest on B's Capital Interest on C's Capital Interest on drawingsFor A- Rs.350 For B - Rs.250 For C - Rs.150 SALARIES To A - Rs.5,000, and To B - Rs.7, 500Commission to ACOMMISSION to A is Rs. 3,000 Calculation of Profit share of each partner Profit available for distribution A's Profit Share B's Profit Share C's Profit Share Thus, as per the adjustment entry, an AMOUNT of Rs. 2520 and Rs. 2740 has been debited from A and C's capital account respectively and has been credited to B's capital account. |
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