On 31st March, 2023, the capitals of Raghav and Diya stood at ₹ 4,00,000 and ₹ 3,00,000 respectively, after the necessary adjustment in respect of

On 31st March, 2023, the capitals of Raghav and Diya stood at ₹ 4,00,000 and ₹ 3,00,000 respectively, after the necessary adjustment in respect of drawings and net profit. Subsequently, it was discovered that interest on capital @ 10% p.a had been omitted. The net Profit the year ended 31st March, 2023 amounted to ₹ 1,00,000.

During the year ended 31st March, 2023, Raghav’s drawings were ₹ 2,000 drawn at the beginning of each month, while Diya’s drawings were ₹ 3,000 drawn at the beginning of each quarter. Pass the necessary adjustment entry.

[Ans.: Dr. Diya’s Capital A/c and Cr. Raghav’s Capital by ₹ 5,600; Opening Capitals (1.4.2022); Raghav: ₹ 3,74,000; Divya: ₹ 2,62,000.]