Question

OR
Raj and Suri are partners in a firm sharing profits equally. Their capitals zs on April 1, 2019 were 2.50.000
and "1,50,000 respectively. On July 1, 2019. They decided that their capitals should be 2,00.000 ach. The
necessary adjustment in the capitals were made by introducing or withdrawing cash by the partners. Interest on
capital is allowed @8% p.2. Pass the necessary Journal Entries on July 1, 2019 and compute interest on partner's
capitals for the year ending March 31,2020.
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Answer 1

Raj and Suri are partners in a firm sharing profits equally. Their capitals zs on April 1, 2019 were 2.50.000

and "1,50,000 respectively. On July 1, 2019. They decided that their capitals should be 2,00.000 ach. The

necessary adjustment in the capitals were made by introducing or withdrawing cash by the partners. Interest on

capital is allowed @8% p.2. Pass the necessary Journal Entries on July 1, 2019 and compute interest on partner's

capitals for the year ending March 31,2020.