Please solve the question
Solution :-
Adjustment Table
Journal Entry:-
Adjustment Table
Particulars | A | B | C | Total |
Interest already credited @15% | 2,25,000 | 4,50,000 | 9,00,000 | 15,75,000 |
Interest that should have been credited @ 10% | 1,50,000 | 3,00,000 | 6,00,000 | 10,50,000 |
Partners over credited with | (75,000) | (1,50,000) | (3,00,000) | (5,25,000) |
By recovering this interest profits will be increased by Rs. 5,25,000 & divided in 2:3:5 | 1,05,000 | 1,57,500 | 2,62,500 | 5,25,000 |
Net Effect | 30,000(Cr.) | 7,500(Cr.) | 37,500(Dr.) | - |
Journal Entry:-
S,No. | Particulars | L.F | Debit | Credit |
1) | C's Capital A/c Dr. | 37,500 | ||
To A's Capital A/c | 30,000 | |||
To B's Capital A/c | 7,500 | |||
(Being adjustment entry passed.) |