A and B are partners in a firm sharing profits and losses in the ratio of 2 : 3. The following was the Balance Sheet of the firm as at 31.3.2024
A and B are partners in a firm sharing profits and losses in the ratio of 2 : 3. The following was the Balance Sheet of the firm as at 31.3.2024.
Profits ₹ 2,00,00 for the year ended 31.3.2024 were divided between the partners without allowing interest on capital @ 6% p.a., interest on drawings @ 10% p.a. and salary to B @ ₹ 5,000 per month. During the year A withdrew ₹ 40,000 and B withdrew ₹ 20,00.
Showing your working notes clearly, pass the necessary rectifying entry.
Ans.
A’s Capital A/c Dr. 13,400
To B’s Capital A/c 13,400
| Liabilities | ₹ | Assets | ₹ |
| Capitals: A B | 4,90,000 3,00,000 | Sundry Assets | 7,90,000 |
| 7,90,000 | 7,90,00 |
Anurag Pathak Answered question May 29, 2024
