Q. 7. Naveen, Seerat and Hina were partners in a firm manufacturing blankets. They were sharing profits in the
ratio of 5:3:2. Their capitals on 1" April, 2012 were 2,00,000; 3,00,000 and 6,00,000 respectively. After the
floods in Uttarakhand, all partners decided to help the flood victims personally.
For this Naveen withdrew 10,000 from the firm on 15 September, 2012. Seerat, instead of withdrawing cash
from the firm took blankets amounting to 12,000 from the firm and distributed to the flood victims. On the
other hand, Hina withdrew 20,000 from her capital on 1 January, 2013 and set up a centre to provide medical
facilities in the flood affected area.
The partnership deed provides for charging interest on drawings @ 6% p.a. After the final accounts were
prepared, it was discovered that interest on drawings had not been charged. Give the necessary adjusting
journal entry and show the working notes clearly.
A [OD.; Delhi Set I, II, III 2014)
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the partnership deed provided
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