Question

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.​

Answer 1

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