KRISHNA,SANDEEP AND KARIM ARE PARTNERS SHARING PROFIT IN THE RATIO OF 3:2:1 THEIR FIXED CAPITAL ARE:KRISHNA 1,20,000,SANDEEP 90,000 AND KARIM - English - Prepositions

Question

KRISHNA,SANDEEP AND KARIM ARE PARTNERS SHARING PROFIT IN THE RATIO
OF 3:2:1 THEIR FIXED CAPITAL ARE:KRISHNA 1,20,000,SANDEEP 90,000
AND KARIM 60,000 FOR THE YEAR 2006-07,INTEREST WAS CREDITED TO THEM
@6% p a INSTEAD OF 5%p a RECORD ADJUSTMENT ENTRY

Manisha Arora · Accepted Answer

Hey Gaurav, the solution to your query is here

Journal

Date

Particulars
L F
Debit Amount
Rs
Credit Amount
Rs

Karim’s Current A/c
Dr

150

To Karishna’s Current A/c

150

(Interest on Capital was credited @ 6%
instead of 5%, now rectified)

Adjusting Table

Particulars
Karishna
Sandeep
Karim
Total

Interest on Capital wrongly credited (Dr
)
7,200
5,400
3,600
16,200

Interest on Capital to be credited @ 5% (Cr
)
6,000
4,500
3,000
13,500

Profit of Rs 2,700 be credited (Cr
)
1,350
900
450
2,700

Net Effect
150 (Cr )

150 (Dr )
Nil

	Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

		Karim’s Current A/c	Dr.		150
		To Karishna’s Current A/c				150
		(Interest on Capital was credited @ 6% instead of 5%, now rectified)

Particulars	Karishna	Sandeep	Karim	Total
Interest on Capital wrongly credited (Dr.)	7,200	5,400	3,600	16,200
Interest on Capital to be credited @ 5% (Cr.)	6,000	4,500	3,000	13,500
Profit of Rs 2,700 be credited (Cr.)	1,350	900	450	2,700
Net Effect	150 (Cr.)		150 (Dr.)	Nil

KRISHNA,SANDEEP AND KARIM ARE PARTNERS SHARING PROFIT IN THE RATIO OF 3:2:1.THEIR FIXED CAPITAL ARE:KRISHNA 1,20,000,SANDEEP 90,000 AND KARIM 60,000. FOR THE YEAR 2006-07,INTEREST WAS CREDITED TO THEM @6% p.a INSTEAD OF 5%p.a.RECORD ADJUSTMENT ENTRY.