Neena and Sara were partners in a firm with fixed capitals of ₹ 5,00,000 and ₹ 4,00,000 respectively. It was discovered that interest on capital @ 6% p.a
Neena and Sara were partners in a firm with fixed capitals of ₹ 5,00,000 and ₹ 4,00,000 respectively. It was discovered that interest on capital @ 6% p.a. was credited to the partners for the two years ending 31st March, 2018 and 31st March, 2019 whereas there was no such provision in the partnership deed. Their profit sharing ratio during the last two years was:
| 2017 – 18 | 4 : 5 |
| 2018 – 19 | 5 : 1 |
Showing your working clearly, pass the necessary adjustment entry to rectify the error.
[Ans.
Sara’s Current A/c Dr. 9,000 To Neena’s Current A/c 9,000
Anurag Pathak Answered question May 31, 2024
