Vijay, Sanjay and Ajay are partners in a firm sharing profits in the ratio of 5:3:2. Their capitals were
Rs.3.00.000: Rs.2.00.000 and Rs.1.00,000 respectively. For the year 2019, interest on capitals was
credited to their capital accounts @5% p.a. instead of 6% p.a. showing your working clearly, pass the
necessary adjusting entry.
Answers
Answer:
credited = 5%
have to be credited = 6%
not credited = 6% - 5% = 1%
let's make adjustment by crediting 1%
details vijay sanjay ajay firm
interest
on cap 1% 3000 2000 1000 (6000)
profit/loss (3000) (1800) (1200) 6000
net effect nil 200 (200) nil
ajay's capital account ..... Dr. 200
to sanjay's capital account 200
a part from this you may also try this
details vijay sanjay ajay firm
interest
taken (15,000) (10,000) (5000) 30, 000
interest
given 18,000 12,000 6000 (36, 000)
profit/loss (3000) (1800) (1200) 6000
net effect nil 200 (200) nil
ajay's capital account ..... Dr. 200
to sanjay's capital account 200
you may try anyone which one is easy for you