# A, B and C are partners in a firm. They had omitted interest on capital @10% p.a. forthree years ended 31st March, 2013. Their fixed capitals on which interest was to becalculated throughout were:A `1,00,000B ` 80,000plC ` 70,000Give the necessary adjusting journal entry with working notes.pls give the solution that who the ammunt come

 Journal Particulars L.F. Debit AmountRs Credit AmountRs A’s Capital A/c Dr. 5,000 To B’s Capital A/c 1,000 To C’s Capital A/c 4,000 (Being adjustment of interest on capital omitted in previous 3 years)
Working notes:-
1. C
alculation of Interest on Capital:
A = 1,00,000 *10 / 100 = Rs. 10,000
B =  80,000 * 10/100 = Rs. 8,000
C=  70,000 * 10/100 = Rs. 7,000
​Total Interest on Capital = Rs 25,000 (for one year)
For 3 years = Rs 25,000 * 3 = Rs 75,000
The above interest on capital has not been credited to partners, which means the amount (Rs 75,000) must have been distributed as profit to them.
 Statement Showing Adjustment Particulars A B C Total Amount which should have been credited by way of interest on capital: In 2011 10,000 8,000 7,000 25,000 In 2012 In 2013 10,00010,000 8,0008,000 7,0007,000 25,000  25,000 Amount which should have been debited for sharing the above loss: 30,000 24,000 21,000 75,000 Wrong Distribution 25,000 25,000 25,000 75,000 Net Effect 5,000(Dr.) 1,000(Cr.) 4,000(Cr.) NIL

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