Question

Tom and Harry were partners in a firm sharing profits in the ratio of 5:3. During the year ended 31st March,2015. Tom had withdrawn Rs. 40000 Interest on his drawings amounted to RS.2000. Pass necessary journal entry for charging interest on drawings assuming that capitals of drawings assuming that capitals of partners.
I) Capitals were fixed
ii) Capitals were fluctuating

Answer 1

Answer:

Tom and Harry were partners in a firm sharing profits in the ratio of 5:3. During the year ended 31st March,2015. Tom had withdrawn Rs. 40000 Interest on his drawings amounted to RS.2000. Pass necessary journal entry for charging interest on drawings assuming that capitals of drawings assuming that capitals of partners.

I) Capitals were fixed.

ii) Capitals were fluctuating.