Mand N were partners in a firm sharing profits in 3 : 2 ratio. Their respect
capitals were *2,00,000 and 3,00,000. The partnership deed provided the fol
Their respective fixel
A the following
i.
Interest on capital @ 10% p.a.
ii.
Interest on drawing @ 12% p.a.
During the year ended 31-3-2014, M's drawings were 7. 1,000 per month drawna
the end of every month and N's drawings were 7. 2,000 per month drawn in the
beginning of the every month. After the preparation of final accounts for the year ende
31-3-2014 it was discovered that interest on M's drawings was not taken in
consideration.
Calculate interest on M's drawings and give necessary adjusting entry for the same.
Answers
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Capital were M 2,00,000 Interested on 10% is
2,00,000=20,000
N3,00,000=30,000
capital. capital
M A/c. 2,00,000. N A/c. 3,00,000
20,000. 30,000
drawing 1,80,000. 2,70,000
Then Interest on drawing
M 1,80,000=21600
N 2,70,000=32400
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