Question

Anita and Ankita are partners sharing profits equally. Their capitals, maintained following Fluctuating Capital Accounts Method, as on 31st March, 2017 were ₹ 5,00,000 and ₹ 4,00,000 respectively. Partnership Deed provided to allow interest on capital @ 10% p.a. The firm earned net profit of ₹ 2,00,000 for the year ended 31st March, 2018. Pass the journal entry for interest on capital.

Answer 1

Answer:

interest on capital @ 10%

Anita's interest on capital = 50,000

Ankita's interest on capital = 40,000

Journal entry for interest on capital -

Interest a/c Dr.

To partners Capital a/c

Interest a/c Dr. 90000

To Anita Capital a/c 50000

To Ankita Capital a/c 40000

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Answer 2

this is the answer. hope that i was helpful for you☺