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Q73.(2020 edition) On 31March, 2018 the balance in the Capital Accounts of Abhir, Bobby and Vineet, aftermaking adjustments for profits and drawings were Rs.8,00,000, Rs.6, 00,000 & Rs.4,00,000 respectively.Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. Thepartners were entitled to interest on capital @ 10% p.a., and were to be charged interest on drawings@6% p.a. The drawings during the year were: Abhir -Rs.20,000 drawn at the end of each month, Bobby-Rs 50,000 drawn at the beginning of every half year and Vineet -Rs. 1,00,000 withdrawn on31stOctober, 2017. The net profit for the year ended 31st March, 2018 was Rs. 1,50,000. The profitsharing ratio was 2:2:1.Pass necessary adjusting entry for the above adjustments in the books ofthe firm. |
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