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A and B are partners sharing profits and losses in the ratio of 3 : 1. Following is the Balance Sheet of the firm as at 31st March, 2024.

Liabilities Assets

A’s Capital

B’s Capital

90,000

30,000

Drawings:

A

B

Sundry Assets

 

12,000

6,000

1,02,000

  1,20,000   1,20,00

Profit for the year ended 31st March, 2024 ₹ 24,000 was divided between the partners in their profit sharing ratio, but interest on capital at 5% p.a. and on drawings at 6% p.a. was inadvertenty ignored. Give the necessary adjustment entry for the adjustment of interest. Interest on drawings may be calculated on an average basis for 6 months.

Ans:

B’s Capital A/c Dr. 45 To A’s Capital A/c 45

Anurag Pathak Changed status to publish June 13, 2024
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