Question

p,q and r are sharings profits in ratio 2:1:1 have fixed capitals of 4 lakh,3lakh and 2lakh respectively.after closing the accounts for the year ending 31 march 2021 it was discovered that interest on capital was provided @6% instead of 8% p.a. what will be the adjusting entry

Answer 1

Answer:

Explanation: First add the total money: 4+3+2= 9 lakh.

step 2: Add the ratio: 2+1+1=4.

Step 3: we should find the amount for each person how much they get.

PERSON P: 2/4*9,00,000.=450000.

PERSON Q: I/4*9,00,000=225000.

PERSON R: IS 225000.

As there is no ajusting entry because all the money are equally shared. when we add them, we get: 450000+225000+225000=9,00,000.

hope it helps u.