Question

Anu and Tanu are equal partners with fixed capitals of ₹2,00,000 and ₹1,00,000 respectively. After closing the accounts for the year ending 31st – March, 2019 it was discovered that interest on capitals @ 8% p.a. was omitted to be provided. Pass the adjusting entry :

Answer 1

Answer:

Anu will be credited by Rs. 4000 and Tanu will be debited by Rs.

4000

Answer 2

Answer:

Explanation:

Interest on Capital

Anu = 2,00,000 * 8 /100 = 16000

Tanu = 1,00,000 *8 /100 = 8000

total Interest = 16000 + 8000 = 24000

Adjustment of profit

                                                          Anu                      Tanu             Total    

Interest on capital                       16000                        8000          24000

Less : wrongly distributed profit  12000                      12000         24000

Adjusted profit                               4000                         4000        24000

                                         Journal Entries                                                          

Tanu Current A/c                   4000

   To Anu current A/c                               4000