Question

P, Q and R were partners in a firm sharing profits in the ratio of 4:3:3. After division of the profits for the year

ended 31st March, 2017, their capitals were 4,00,000; 2300000; and 2,50,000 respectively. During the year

they withdrew 15,000 each. The profit for the year was 40,000. The partnership deed provided that interest

on capital will be allowed @8% p.a. while preparing the final accounts, interest on capital was not allowed.

You are required to calculate the capitals of P, Q and R as on 1st April, 2016 and pass the necessary

adjustment entry for providing interest on capitals. Show your workings.​

Answer 1

Answer:

The profit for the year ending 31st March, 2018 is Rs. 3,50000 . Amount ... Pass necessary Journal entry regarding deficiency borne by P and Q . ... How satisfied are you with the answer?