1.

Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3 : 2. Following information is of the firm as on 31st March 2019: Liabilities ₹ Assets ₹ Mannu’s Capital 30,000 Drawings: Shristhi’s Capital 10,000 40,000 Mannu 4,000 Shristhi 2,000 6,000 Other Assets 34,000 40,000 40,000 Profit for the year ended 31st March, 2019 was ₹ 5,000 which was divided in the agreed ratio, but interest 5% p.a. on capital and 6% p.a. on drawings was inadvertently omitted. 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 information is of the firm as on 31st March 2019:
























































Liabilities Assets
Mannu’s Capital 30,000 Drawings:
Shristhi’s Capital 10,000
40,000

Mannu 4,000
Shristhi 2,000 6,000
Other Assets 34,000
40,000 40,000


Profit for the year ended 31st March, 2019 was ₹ 5,000 which was divided in the agreed ratio, but interest 5% p.a. on capital and 6% p.a. on drawings was inadvertently omitted. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.



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