Mannu and Shristhi are partners in a firm sharing profit in the ratio

1.	Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3:2. Following is the balance sheet of the firm as on March 31,2006. Balance Sheet as on March 31, 2006 LiabilitiesAmt. (Rs)AssetsAmt. (Rs)Mannu's Capital30,000DrawingsShristhi's Capital10,000––––––––40,000 Mannu4,000 Shristhi2,000––––––5,000Other Assets34,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯40,000––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯40,000–––––––––––––––– Profit for the year ended March 31, 2006 was Rs 5,000 which was divided in the agreed ratio, but interest 5% pa on capital and 6% pa on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.
Answer» Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3:2. Following is the balance sheet of the firm as on March 31,2006. Balance Sheet as on March 31, 2006 $\begin{matrix} Liabilities & Amt. (Rs) & Assets & Amt. (Rs) Mannu's Capital & 30, 000 & Drawings Shristhi's Capital & 10, 000 - ------ - & 40, 000 & Mannu & 4, 000 Shristhi & 2, 000 - ---- - & 5, 000 Other Assets & 34, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 40, 000 - ------ - - ------ - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 40, 000 - ------ - - ------ - \end{matrix}$ Profit for the year ended March 31, 2006 was Rs 5,000 which was divided in the agreed ratio, but interest 5% pa on capital and 6% pa on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.

Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3:2. Following is the balance sheet of the firm as on March 31,2006. Balance Sheet as on March 31, 2006 LiabilitiesAmt. (Rs)AssetsAmt. (Rs)Mannu's Capital30,000DrawingsShristhi's Capital10,000––––––––40,000 Mannu4,000 Shristhi2,000––––––5,000Other Assets34,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯40,000––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯40,000–––––––––––––––– Profit for the year ended March 31, 2006 was Rs 5,000 which was divided in the agreed ratio, but interest 5% pa on capital and 6% pa on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.

Answer»

Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3:2. Following is the balance sheet of the firm as on March 31,2006.

Balance Sheet

as on March 31, 2006

$\begin{matrix} Liabilities & Amt. (Rs) & Assets & Amt. (Rs) Mannu's Capital & 30, 000 & Drawings Shristhi's Capital & 10, 000 - ------ - & 40, 000 & Mannu & 4, 000 Shristhi & 2, 000 - ---- - & 5, 000 Other Assets & 34, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 40, 000 - ------ - - ------ - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 40, 000 - ------ - - ------ - \end{matrix}$

Profit for the year ended March 31, 2006 was Rs 5,000 which was divided in the agreed ratio, but interest 5% pa on capital and 6% pa on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.

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