# Anil, Sunil and Sanjay have omitted interest on Capitals for two years ended on 31st March, 2023. Their fixed capitals in two years were Anil ₹ 8,00,000, Sunil ₹ 7,00,00 and Sanjay ₹ 3,00,000

Anil, Sunil and Sanjay have omitted interest on Capitals for two years ended on 31st March, 2023. Their fixed capitals in two years were Anil ₹ 8,00,000, Sunil ₹ 7,00,00 and Sanjay ₹ 3,00,000. Rate of interest on Capital is 10% p.a. Their profit sharing ratios were in first year 4 : 3 : 2 and in second year 3 : 2 : 1.

Give necessary adjusting entry at the beginning of next year.

[Ans. Current A/cs of Anil & Sanjay will be debited by ₹ 10,000 each and Current A/c of Sunil will be Credited by ₹ 20,000.]

Anurag Pathak Answered question May 28, 2024