Accountancy, asked by shaharif121, 5 months ago

A, B and C are partners with a profit sharing ratio of 4:1:1 Their capitals stood in the books of the firm at 30,000: 20,000 and 10,000 respectively. Subsequently, it was discovered that Interest on Capital @ 10% p.a. had been omitted. The profit earned during the year amounted R36,000. Give the necessary adjusting entry, if the partners drew 3,000, 72,250 and R1,350 respectively.​

Answers

Answered by sangeeta9470
3

Answer:

calculation of opening capital

A. B. .C

closing capital 30000. 20000. 10000

+ drawings. 3000. 2250. 1350

- profit. 24000. 6000. 6000

opening capital 9000. 16250 5350

Table showing adjustment

A. B. C

interest on

capital. (cr). 900. 1625. 535

division of

loss. (dr).

3060 in 4:1:1. 2040 510. 510

difference. 1140. 1115. 25

(dr). (cr). (cr)

rectify entry

A'capital. account. dr. 1140

To B'capital account. 1115

To C'capital account. 25

Explanation:

Opening capital is calculated because interest on capital is calculated on opening capital

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