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Mannu and Shrishti are partners in a firm sharing profit in the ratio of 3 : 2. Following is the balance sheet of the firm as on March 31, 2017.

Balance Sheet as at March 31, 2017

Liabilities Assets

Mannu’s Capital

Shrishti’s Capital

30,000

10,000

Drawings:

Mannu

Shrishti

Other Assets

 

4,000

2,000

34,000

  40,000   40,000

Profit for the year ended March, 31, 2017 was ₹ 5,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 5% p.a. on drawings was omitted. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.

[Ans : Mannu (Cr.) ₹ 288 and Shrishti (Dr.) ₹ 288]

Anurag Pathak Changed status to publish March 25, 2024
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