InterviewSolution
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Ram, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their capitals were fixed at ₹ 3,00,000, ₹ 1,00,000, ₹ 2,00,000. For the year ended 31st March, 2018, interest on capital was credited to them @ 9% instead of 10% p.a. The profit for the year before charging interest was ₹ 2,50,000. Show your working notes clearly and pass necessary adjustment entry. |
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Answer» essary adjustment entry is given below.Explanation:Given,Ram, SHYAM and Mohan sharing profits and losses in the RATIO of 2 : 1 : 2Their capitals were fixed at ₹ 3,00,000, ₹ 1,00,000, ₹ 2,00,000.The interest on capital was credited to them @ 9% instead of 10% p.aCalculation of Interest on Capital 10% p.a. Interest on Ram's Capital Interest on Shyam's Capital Interest on Mohan's Capital Calculation of Interest on Capital 9% p.a. Interest on Ram's Capital Interest on Shyam's Capital Interest on Mohan's Capital As per the adjustment entry given below, an amount of Rs. 200 and Rs. 400 has been obtained from Shyam and Mohan and MUST be credited to Ram's Capital ACCOUNT. |
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