Question

On 1st April 2015 the Capitals of A and B were Rs4,00,000 and Rs2,00,000 respectively. They divided

profits in their capital ratio. Profits for the year ended 31st March, 2016 were Rs3,00,000 which have been duly

distributed among the partners, but the following transactions were not passed through the books.

a) Interest on Capitals @12% p.a.

b) Interest on Drawings A Rs12,000; B Rs10,000.

c) Commission due to B Rs20,000 on special transaction.

d) A is to be paid salary of Rs50,000.

You are required to pass a journal entry on 10th April,2016 which will not affect the P and L A/c of the firm and

the same time will rectify the errors.​

Answer 1

Answer:

They divided profits in their capital ratio. ... ended 31st March, 2016 were 3,00,000 which have been duly ... partners, but the following transactions were not passed ...

hope it helps u