Question

amit capital
and Sumit entered into partnership on 1st April, 2020 contributing * 1,50,000 and 2,50,000
ectively towards capitals. The Partnership Deed provided for interest on capitals @ 10% p.a. It also
ided that Capital Accounts shall be maintained following Fixed Capital Accounts Method. The firm
ed net profit of 1,00,000 for the year ended 31st March, 2021.
the Journal entry for interest on capital.​

Answer 1

first find Interest on capital and than do the journal entry of it.

Answer 2

Answer:

Explanation:

Calculation of interest:

Amit =  1,50,000 * 10 /100 = 15,000

Sumit = 250000 *10 /100 = 25,000

                                                                                                                                     

                                  Joutnal Entries                                                                            

Profit & loss app. A/c     40000

  To Amit's Current A/c                  15000

   To Sumit Current  A/c                  25000

( Being interest transferred  to profit & loss A/c)