The net profit of X, Y and Z for the year ended March 31, 2006 was Rs

1.	The net profit of X, Y and Z for the year ended March 31, 2006 was Rs 60,000 and the same was distributed among them in their agreed ratio of 3:1:1. It was subsequently discovered that the under mentioned transanctions were not recorded in the books (i) Interest on Capital 5% pa. (ii) Interest on drawings amounting to X Rs 700, Y Rs 500 and Z Rs 300. (iii) Partner's Salary X Rs 1,000, Y Rs 1,500 pa. The capital accounts of partners were fixed as X Rs 1,00,000, Y Rs 80,000 and Z Rs 60,000. Record the adjustment entry.
Answer» The net profit of X, Y and Z for the year ended March 31, 2006 was Rs 60,000 and the same was distributed among them in their agreed ratio of 3:1:1. It was subsequently discovered that the under mentioned transanctions were not recorded in the books (i) Interest on Capital 5% pa. (ii) Interest on drawings amounting to X Rs 700, Y Rs 500 and Z Rs 300. (iii) Partner's Salary X Rs 1,000, Y Rs 1,500 pa. The capital accounts of partners were fixed as X Rs 1,00,000, Y Rs 80,000 and Z Rs 60,000. Record the adjustment entry.

The net profit of X, Y and Z for the year ended March 31, 2006 was Rs 60,000 and the same was distributed among them in their agreed ratio of 3:1:1. It was subsequently discovered that the under mentioned transanctions were not recorded in the books (i) Interest on Capital 5% pa. (ii) Interest on drawings amounting to X Rs 700, Y Rs 500 and Z Rs 300. (iii) Partner's Salary X Rs 1,000, Y Rs 1,500 pa. The capital accounts of partners were fixed as X Rs 1,00,000, Y Rs 80,000 and Z Rs 60,000. Record the adjustment entry.

Answer»

The net profit of X, Y and Z for the year ended March 31, 2006 was Rs 60,000 and the same was distributed among them in their agreed ratio of 3:1:1. It was subsequently discovered that the under mentioned transanctions were not recorded in the books

(i) Interest on Capital 5% pa.

(ii) Interest on drawings amounting to X Rs 700, Y Rs 500 and Z Rs 300.

(iii) Partner's Salary X Rs 1,000, Y Rs 1,500 pa.

The capital accounts of partners were fixed as X Rs 1,00,000, Y Rs 80,000 and Z Rs 60,000. Record the adjustment entry.

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