A, B and C shared the profit of Rs. 9,00,000 in the ratio of 2:2:1 without providing for interest on B’s loan, B granted a loan of Rs. 4,00,000 in the beginning of accounting year. Whereas the partnership deed is silent on the interest on loan and the profit sharing ratio. Give adjusting entry.
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Date Particulars L.F Dr. Cr.
A’s capital a/c Dr.
B’s capital a/c Dr.
To A’s capital a/c
To B’s Loan a/c
(Being wrong profit share & interest on loan adjusted)
68000
68000
112000
24000
A’s capital a/c Dr.
B’s capital a/c Dr.
To A’s capital a/c
To B’s Loan a/c
(Being wrong profit share & interest on loan adjusted)
68000
68000
112000
24000
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