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.

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

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