A, B and C are partners in a firm. They had omitted interest on capital @10% p.a. forthree years ended 31st March, 2013. Their fixed capitals on which interest was to becalculated throughout were:A `1,00,000B ` 80,000plC ` 70,000

Give the necessary adjusting journal entry with working notes.

pls give the solution that who the ammunt come

 
     
     
     
     
     
     
 
Journal
ParticularsL.F.Debit AmountRsCredit AmountRs
A’s Capital A/cDr. 5,000 
  To B’s Capital A/c  1,000
 To C’s Capital A/c  4,000
(Being adjustment of interest on capital omitted in previous 3 years)   
    
Working notes:-
1. C
alculation of Interest on Capital:
A = 1,00,000 *10 / 100 = Rs. 10,000
B =  80,000 * 10/100 = Rs. 8,000
C=  70,000 * 10/100 = Rs. 7,000
‚ÄčTotal Interest on Capital = Rs 25,000 (for one year)
For 3 years = Rs 25,000 * 3 = Rs 75,000
The above interest on capital has not been credited to partners, which means the amount (Rs 75,000) must have been distributed as profit to them.
Statement Showing Adjustment
ParticularsABCTotal
Amount which should have been credited by way of interest on capital: In 201110,0008,0007,000 25,000
 In 2012
 In 2013
10,000
10,000
8,000
8,000
7,000
7,000
25,000  25,000
Amount which should have been debited for sharing the above loss: 30,000   24,000  21,000  75,000  
 Wrong Distribution 25,000  25,000  25,000  75,000  
Net Effect5,000(Dr.)1,000(Cr.)4,000(Cr.)NIL

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