Question

On 31March, 2018 the balance in the Capital Accounts of Abhir, Bobby and Vineet, after

making adjustments for profits and drawings were Rs.8,00,000, Rs.6, 00,000 & Rs.4,00,000 respectively.

Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. The

partners were entitled to interest on capital @ 10% p.a., and were to be charged interest on drawings

@6% p.a. The drawings during the year were: Abhir -Rs.20,000 drawn at the end of each month, Bobby

-Rs 50,000 drawn at the beginning of every half year and Vineet -Rs. 1,00,000 withdrawn on

31stOctober, 2017. The net profit for the year ended 31st March, 2018 was Rs. 1,50,000. The profit

sharing ratio was 2:2:1.Pass necessary adjusting entry for the above adjustments in the books of

the firm.

Answer 1

Answer:

Explanation:

Helpful or not? Solution series is from last to first.

Answer 2

Answer:

Net effect of

Abhir 10112 cr.

Bobby 14402 dr.

Vineet 4290 cr.

Adjustment journal entry

Bobby's capital A/C dr. 14402

. To abhir's capital A/C. 10112

. To vineet's capital A/C. 4290