Question

1. The net profit of X, Y and Z for the year ended March 31, 2016 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 transactions were not recorded
in the books
(1) Interest on Capital @ 5% p.a.
(11) Interest on drawings amounting to X Rs. 700, Y Rs. 500 and Z Rs. 300
(in) Partner's Salary: X Rs. 1000, Y Rs. 1500 p.a.
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 1

Answer:

The net profit of X, Y and Z for the year ended March 31, 2016 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 transactions were not recorded in the books : i) Interest on Capital @ 5% p.a.Mar 31, 2016