0

Mannu and Shrishti are partners in a firm sharing profits in the ratio of 3 : 2. Following information is of the firm as on 31st March 2023:

Liabilities   Assets
Mannu’s Capital
Shrishti’s Capital
3,00,000
1,00,000
4,00,000 Drawings
Mannu
Shrishti
Other Assets
40,000
20,000
3,40,000
    4,00,000   4,00,000

Profit for the year ended 31st March 2023 was ₹ 50,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently omitted. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.

[Ans: Debit Shrishti and Credit Mannu by ₹ 2,880]

Anurag Pathak Changed status to publish April 11, 2024
Add a Comment