Question

Ram and Sudha were partners in a firm sharing profit equally, their fixed capital was to be like and
100000 respectively. The partnership deed provides for interest on capital at 10% per annum. for the year
ended 31st March 2019. The profits of the form were distributed without providing interest on capital, the
journal entry to rectify the error would be:
wournal
Particulars
LE
Suches current Al
S000
ya Roho's currens e
100
Biustento terest on Capital)
Radho's current
Di
5.000
To Suches.current A
4.000
Being a custment of interest on Gapitals
Interest on Capital Ad
ko
To Suchas current Ac
20.000
to Roitha's current alt
0000
eeing adjustment of interest on Capital
Pront and Loss Appropriation Ac
30.000
To Sudhas current Ac
1500
To Racas current AG​

Answer 1

Answer:

100000 respectively. The partnership deed provides for interest on capital at 10% per annum. for the year

ended 31st March 2019. The profits of the form were distributed without providing interest on capital, the

journal entry to rectify the error would be:

wournal

Particulars

LE

Suches current Al

S000

ya Roho's currens e

100

Biustento terest on Capital)

Radho's current

Di

5.000

To Suches.current A

4.000

Being a custment of interest on Gapitals

Interest on Capital Ad

ko

To Suchas current Ac

20.000

to Roitha's current alt

0000

eeing adjustment of interest on Capital

Pront and Loss Appropriation Ac

30.000

To Sudhas current Ac

1500

To Racas current AG