Question

Question 9

Simi, Manu, and Beena are partners in a firm sharing profits and losses in the ratio of 2:2:1.

The balances of their fixed capital accounts on 1st April, 2020, were: Simi ₹ 1,00,000,

Manu ₹ 1,00,000 and Beena ₹ 80,000

After the accounts for the year ended 31st March, 2021, were prepared, it was discovered

that interest on capital @ 10% per annum had been credited to the partners’ current accounts

even though it was not provided in the partnership deed.

The error in Simi’s capital account / current account will be rectified by:

(a) Debiting her capital account with ₹ 1,200

(b) Crediting her current account with ₹ 1,200

(c) Debiting her current account with ₹ 1,200

(d) Crediting her capital account with ₹ 1,200​

Answer 1

Answer:

1,2000

Explanation:

credit card

Answer 2

(c) Debiting her current account with ₹ 1,200

• In case a partnership deed is absent in a partnership firm the following provisions shall apply:
• All partners would be dividing the profits and losses equally.
• If any loan has been given to the firm by the partners to the firm, the partnership firm will be giving 6% interest on that loan.
• No salary would be given to any partner for participation in the work of a partnership firm.
• Interests will not be given on the capital of partners.
• Interest will not be taken on his given amount by the partnership firm in the form of drawing to any partner.