Ram, Mohan and Sohan sharing profits and losses equally have capitals of Rs. 1,20,000, Rs. 90,000 and Rs. 60,000 respectively. For the year ended 31st March, 2019, interest was credited to them @ 6% instead of 5%. Give adjustment Journal entry. Post category:Accountancy Reading time:1 mins read Solution Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostAzad and Benny are equal partners. Their capitals are Rs. 40,000 and Rs. 80,000 respectively. After the accounts for the year had been prepared, it was noticed that interest @ 5% p.a. as provided in the Partnership Deed was not credited to their Capital Accounts before distribution of profits. It is decided to pass an adjustment entry in the beginning of the next year. Record the necessary Journal entry. Next PostRam, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their capitals were fixed at Rs. 3,00,000, Rs. 1,00,000, Rs. 2,00,000. For the year ended 31st March, 2019, interest on capital was credited to them @ 9% instead of 10% p.a. The profit for the year before charging interest was Rs. 2,50,000. Show your working notes clearly and pass necessary adjustment entry. You Might Also Like Why do we add back preliminary expenses to net profit while calculating cash flows from operating activities? October 4, 2022 On the basis of the following information calculate: (i) Debt to Equity Ratio. (ii) Working Capital Turnover Ratio. Information: August 18, 2022 On dissolution of a firm, Sundry Creditors amounted to Rs. 8,000. These were paid at a discount of 5%. What entry will he passed? September 27, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.