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Anita and Ankita are partners sharing profits equally. Their capitals, maintained following Fluctuating Capital Accounts Method, as on 31st March, 2017 were ₹ 5,00,000 and ₹ 4,00,000 respectively. Partnership Deed provided to allow interest on capital @ 10% p.a. The firm earned net profit of ₹ 2,00,000 for the year ended 31st March, 2018. Pass the journal entry for interest on capital. |
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Answer» interest on CAPITAL @ 10%Anita's interest on capital = 50,000Ankita's interest on capital = 40,000Journal entry for interest on capital -Interest a/c Dr. To partners Capital a/cInterest a/c Dr. 90000 To Anita Capital a/c 50000 To ANKITA Capital a/c 40000 HOPE its help u mark me as brainiliest plz |
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