Question

A B and C are partners in a firm.After the accounts of partnership have been drawn up and books closed off it is discovered that for the year ended 31st March 2016and 2017 interest has been allowed to the partners upon their capitals @ 6% p.a although there is no provision for interest in the partnership deed.Their fixed capital on which interest was calculated were Rs.1 00 000 Rs.80 000RS.60 000respectively. During the last two years they have shared the profits as follows :- 20163:2:1 20175:3:2​

Answer 1

Answer:

sorry sorry sorry sorry

Answer 2

Answer:

Explanation:

Interest:

                             A                          B                                  C              Total      

2016                6000                      4800                           3600             14400

2017               6000                      4800                          3600                14400

                    12000                       5600                       7200                   28800

Reversal of expense increases profit

Hence profit is 28000 shared on their profit share ratio

2016        7200                 4800       2400       14400

2017        7200               4 320        2880      28800

Net effect =    -2400  ,   480, 1920

Journal Entry =

B's capital       480

C's capital     1920

  To A's capital     2400