after the accounts of a partnership have been drawn up nd books closed off, it is dicovered that for the year ended 31 march ,2010 nd 2011 ,interest has been credited to the partners upon their capitals at 5% per annum although ,no provision for interest is made in the partnership agreement.

the amount involved are:-

interest credited

            YEAR

             2010          A        B        C

                                  4200  2400   1320

             2011            4320  2520   1320

you are required to put through adjusting entry as on 1 april ,2011 if the profits were shared as follows in 2010 , 2 : 2 : 1    and in 2011 , 3 : 4 : 3 .

related to adjustment in closed accounts.

so, u pls rply me a solution to this question.

Journal

Date

Particulars

L.F.

Debit

Amount (Rs)

Credit

Amount (Rs)

 

A’s Capital A/c

Dr.

 

2,904

 

 

To B’s Capital A/c

 

 

1,512

 

To C’s Capital A/c

 

 

1,392

 

(Interest on Capital wrongly provided now adjusted)

 

 

 

 

 

 

 

 

      

 

 

Adjustment Table

Particulars

A

B

C

Total

Interest on Capital wrongly credited now reversed (Dr.)

 

 

 

 

2010

4,200

2,400

1,320

7,920

2011

4,320

2,520

1,320

8,160

Total (A) (Dr.)

8,520

4,920

2,640

16,080

 

 

 

 

 

Share of Profit to be Credited (Cr.)

 

 

 

 

2010 (in the ratio of 2:2:1)

3,168

3,168

1,584

7,920

2011 (in the ratio of 3:4:3)

2,448

3,264

2,448

8,160

Total (B) (Cr.)

5,616

6,432

4,032

16,080

 

 

 

 

 

Net Effect (A – B)

2,904 (Dr.)

1,512 (Cr.)

1,392 (Cr.)

-

 

 

 

 

 

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