Question

X, Y and Z were partners in a firm. On 1st April, 2018, their fixed capitals were
*50,000, *25,000 and * 25,000 respectively.
As per the Partnership Deed:
(i) Z was entitled for salary of 5,000 p.a.
(ii) All the partners were entitled to interest on capital at 5% p.a.
(iii) Profits were to be shared in the ratio of capitals.
Net profit for the year ended 31st March, 2018 of * 33,000 and 31st March, 2019 of
45,000, was divided equally without complying the above terms.
Y noted the above errors and brought them to the notice of other partners.
Pass an adjustment Journal entry to rectify the above errors.​

Answer 1

Answer:

On 1st April, 2018, their fixed capitals were*50000, *25000 and ... (i) Z was entitled for salary of 5,000 p.a. (ii) All the partners were entitled to interest on capital at 5 % p.a.