Question

A, B and C are partner sharing profit and losses as to 1/2 ,1/3 and 1/6 respectively. On 31st March 2017

their Capital Account after including the profits for the year ended 31st March 2017 and dealing with drawings

stood at Rs.26,000, Rs.20,000, and Rs.11,500 respectively. Subsequently they found out that interest on capital at

15 % p.a. and interest on drawings at the same rate had been omitted. The profit for the year in arriving at the

above figures of capital amounted to Rs. 18,000.The drawings of A, B and C during the year had been Rs.3,000;

Rs.1,000 and Rs.1,500 respectively. The interest on drawings works out to Rs.210 for A, Rs.120 for B, 120 for C.

Give the necessary journal entries for rectifying the above omission. Also prepare profit and loss Appropriation

a/c.​

Answer 1

Answer:

1

2

3

4

5

6

7

8

9

0

0

9

8

7

6

5

4

3

2

1