for Kavita, Meenakshi and Gauri are partners doing a paper business. After the accountsof partnership had been prepared, it was noticed that interest on capital for the yearending 31st March, 2018 and 2019, has been allowed to partners @ 6% p.a. althoughthere is no provision for it in the Partnership Deed. Their fixed capitals were *2,00,000,31,60,000 and 1,20,000 respectively.During the last two years, they had shared the profits as under:YearProfit31st March, 201831st March, 20193:2:15:3:2You are required to give necessary adjusting entry on 1st April, 2019.
Answers
Answer:
Kavita, Meenakshi and Gauri are partners doing a paper business. After the accountsof partnership had been prepared, it was noticed that interest on capital for the yearending 31st March, 2018 and 2019, has been allowed to partners @ 6% p.a. althoughthere is no provision for it in the Partnership Deed. Their fixed capitals were *2,00,000,31,60,000 and 1,20,000 respectively.During the last two years, they had shared the profits as under:YearProfit31st March, 201831st March, 20193:2:15:3:2You are required to give necessary adjusting entry on 1st April, 2019.
Explanation:
Kavita, Meenakshi and Gauri are partners doing a paper business. After the accountsof partnership had been prepared, it was noticed that interest on capital for the yearending 31st March, 2018 and 2019, has been allowed to partners @ 6% p.a. althoughthere is no provision for it in the Partnership Deed. Their fixed capitals were *2,00,000,31,60,000 and 1,20,000 respectively.During the last two years, they had shared the profits as under:YearProfit31st March, 201831st March, 20193:2:15:3:2You are required to give necessary adjusting entry on 1st April, 2019.