Question

Q.6. A, B, C and D are partners sharing profit and losses in the ratio of 4:3:3:2. Their respective
fixed capital on 31st March, 2010 were Rs, 60,000, Rs, 90,000 Rs, 1,20,000 and Rs 90,000
respectively. After preparing the final account for the year ended 31st March, 2010, it was
discovered that interest on capital @12% p.a. was not allowed and interest on drawings assuming
to Rs, 2,000, Rs, 2,500, Rs, 1,500 and Rs, 1,000 respectively was also not charged.
Pass the necessary adjustment journal entry showing your working clearly.​

Answer 1

Explanation:

since capital are fixed . entry will passed in current a/c.

Answer 2

Answer:

A's current acc(Debit)- 6,867

B's current acc(Debit)- 750

  To C's current acc(Credit)- 3,850

  To D's current acc(Credit)- 3,767

Explanation:

Working Notes:-

$A=\frac{60,000*12}{100}= 7,200$

$B=\frac{90,000*12}{100}= 10,800$

$C=\frac{1,20,000*12}{100}= 14,400$

$D=\frac{90,000*12}{100}= 10,800$

Thus we will have to create a table for showing adjustments which are linked below:-

• Journal entry is referred to as a journal entry is the act of recording any transaction, whether one is commercial or not.
• An accounting diary that displays the debit and credit balances of a corporation lists transactions.
• Multiple recordings, each of which is either a debit or a credit, may be included in the journal entry.

A's current acc(Debit)- 6,867

B's current acc(Debit)- 750

  To C's current acc(Credit)- 3,850

  To D's current acc(Credit)- 3,767

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