Question

a and b are partners sharing profit and losses in the ratio of 3:2.On 31st march 2017,their balance sheet was as follows​

Answer 1

Answer:

Rectification Entry is as follows:

B's capital A/c Dr. 5280 (Being adjustment entry passed)

To A's capital A/c 5280

Calculation of Opening Capital

B

A

Closing Capital

60,000

20,000

Add:Drawings

10,000

20,000

Less:Profits

(18,000)

(12,000)

Opening Capital

52,000

Feedback

28,000

Interest on capital @12%

6240

3360

Table Showing Adjustments To be

Made

Particulars

Interest on capital

Salary