Question

A and B are partners in a firm sharing profits and losses in the ratio of 7 : 3. Their fixed capitals were: A Rs 9,00,000 and B Rs 4,00,000. The partnership deed provided the following :

Interest on capital @ 10% p.a.

A’s salary Rs 50,000 per year and B’s salary Rs 3,000 per month.

Profit for the year ended 31st March, 2019 Rs 2,78,000 was distributed without providing for interest on capital and partners’ salary. Showing your working clearly, pass the necessary adjustment entry for the above omissions.​

Answer 1

Answer:

dr. a's current a/c and cr. b's current a/c by 11,200

Explanation

particulars           a's capital a/c                 b's capital a/c      

                          dr.                       cr.             dr.                   cr.  

.1) profit wro-       1,94,600                              83,400

gly distri-        

buted  

.2) interest-                                   90,000                              40,000

on capital

3.) salary                                       50,000                               36,000

                             ⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻

                             1,94,600           1,83,400       83400         94600

                             ⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻⁻

                                   11.200 dr.                                11,200cr.