after the accounts of a partnership have been drawn up nd books closed off, it is dicovered that for the year ended 31 march ,2010 nd 2011 ,interest has been credited to the partners upon their capitals at 5% per annum although ,no provision for interest is made in the partnership agreement.
the amount involved are:-
interest credited
YEAR
2010 A B C
4200 2400 1320
2011 4320 2520 1320
you are required to put through adjusting entry as on 1 april ,2011 if the profits were shared as follows in 2010 , 2 : 2 : 1 and in 2011 , 3 : 4 : 3 .
related to adjustment in closed accounts.
so, u pls rply me a solution to this question.
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
| A’s Capital A/c | Dr. |
| 2,904 |
|
| To B’s Capital A/c |
|
| 1,512 | |
| To C’s Capital A/c |
|
| 1,392 | |
| (Interest on Capital wrongly provided now adjusted) |
|
|
| |
|
|
|
|
| |
Adjustment Table | ||||
Particulars | A | B | C | Total |
Interest on Capital wrongly credited now reversed (Dr.) |
|
|
|
|
2010 | 4,200 | 2,400 | 1,320 | 7,920 |
2011 | 4,320 | 2,520 | 1,320 | 8,160 |
Total (A) (Dr.) | 8,520 | 4,920 | 2,640 | 16,080 |
|
|
|
|
|
Share of Profit to be Credited (Cr.) |
|
|
|
|
2010 (in the ratio of 2:2:1) | 3,168 | 3,168 | 1,584 | 7,920 |
2011 (in the ratio of 3:4:3) | 2,448 | 3,264 | 2,448 | 8,160 |
Total (B) (Cr.) | 5,616 | 6,432 | 4,032 | 16,080 |
|
|
|
|
|
Net Effect (A – B) | 2,904 (Dr.) | 1,512 (Cr.) | 1,392 (Cr.) | - |
|
|
|
|
|