1.

Profits earned by a partnership firm for the year ended 31st March, 2017 were distributed equally between the partners Pankaj and Anu without allowing interest on capital. Interest due on capital was Pankaj ₹ 3,000 and Anu ₹ 1,000.

Answer»

ustment AMOUNT are CALCULATED below:EXPLANATION:Given,Profits  were DISTRIBUTED equally between the partners Pankaj and Anu WITHOUT allowing interest on capital. Interest due on capital was Pankaj ₹ 3,000 and Anu ₹ 1,000.Total interest will be (Rs. 3000 + Rs. 1000) i.e., Rs. 4000Profit which is wrongly distributed between them will be Rs. 2000 eachAdjustment amount will be calculated as below:Pankaj = Rs. 3000 - Rs. 2000 = Rs. 1000 (this need to be added to his account)Anu = Rs. 1000 - Rs. 2000 = - Rs. 1000 ( this need to be deducted from his account)Thus, an amount of Rs. 1000 has to be credited to Pankaj's Capital account from Anu's account.



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