Question

43. A and B are partners with a fixed capital of 3 lac and 2 lac respectively. After closing the accounts for the year ending 2019, they found that interest on Capital @10% p.a. was omitted to be provided. The adjustment entry will be: (a) Cr. A's Current A/c30,000 and B's Current A/c 20,000 (b) Cr. A's Current A/c and B's Current A/c25,000 each (c) Dr. A's Current A/c and Cr. B's Current A/c by 5,000 (d) Dr. B's Current A/c and Cr. A's Current A/c by 5,000 it.l.200 0,00 000​

Answer 1

Answer:

D is correct option

Explanation:

PSR is not given then equal 1:1

amount of interest on capital is A 30000 and B 20000 on 10%

A B

profit wrongly 25000 25000

distributed

50000×1:1÷2

interest on 30000 20000

capital

5000 5000

Cr Dr

entry is

B current a/c dr 5000 ---

A current a/c --- 5000