Question

Records of Adjustment:
A, B and C started a business in partnership on Ist April, 2015 and their accounts prepared for the year showed a profit of ₹ 25,200. This was credited in the agreed proportion of 3: 2: 1 to the Partners' Capital Accounts which then had credit balances of ₹ 37,600; ₹ 27,900 and ₹ 15,200 respectively. After closing the books it was realized that the deed of partnership required interest on capital and on drawings to be caleulated at 5% per annum. Drawings for the year had been ₹ 10,000, ₹ 8,000 and ₹ 4,000 respectively upon which ₹ 240, ₹ 190 and ₹ 120 should have been charged for interest. Show by journal entries how would you adjust the accounts concerned in accordance with the Deed of Partnership and prepare the Capital Accounts of the partners in tabular form after the necessary adjustments have been made. [Ans. A's Capital Account will be debited with ₹ 152.50 and B's and C's Capital Accounts will be credited with ₹ 76.67 and ₹ 75.83 respectively.]​

Answer 1

Answer:

I don't know the answer sorry