Question

X, Y and Z are equal partners with fixed capitals of 2,00,000, 3,00,000 and 4,00,000 respectively.
After closing the accounts for the year ending 31 st March 2019 it was discovered that interest on capitals
@ 8% p.a. was omitted to be provided in the adjusting entry:
01
(a) Dr. X and Cr. Y by 8,000
(b) Cr. X and Dr. Z by 8,000
(c) Dr. Xand Cr. Zby 8,000
(d) Cr. X and Dr. Y by 8,000
Ath
of 60 ner annum total​

Answer 1

Answer:

options c is correct

Explanation:

equally then 1:1:1 PSR

interest on capital X 16000 Y 24000 Z 32000 on 8%

X Y Z

profit wrongly 24000 24000 24000

distributed

72000×1:1:1÷3

interest on 16000 24000 32000

capital

8000 nil 8000

Dr Cr

entry is

X current a/c dr 8000 ----

Z current a/c ---- 8000