Plzz solve Q-3
Dear student,
We will prepare adjustment table firstly
Interest on P's capital= 10/100 x 100000 = RS 10000
Interest on Q's capital =10/100 X 50000 = RS 5000
The above interest on capital has not been credited to partners.It is to be credited to their current a/c's resulting in a loss of RS 15000 to firm which is debited to partners in their profit sharing ratio i.e 1:1
ADJUSTMENT TABLE
JOURNAL ENTRY
Regards
We will prepare adjustment table firstly
Interest on P's capital= 10/100 x 100000 = RS 10000
Interest on Q's capital =10/100 X 50000 = RS 5000
The above interest on capital has not been credited to partners.It is to be credited to their current a/c's resulting in a loss of RS 15000 to firm which is debited to partners in their profit sharing ratio i.e 1:1
ADJUSTMENT TABLE
| PARTICULARS | P(rs) | Q(rs) | TOTAL |
| INTEREST ON CAPITAL (Cr) | 10000 | 5000 | 15000 |
| For sharin above loss equally (Dr) | 7500 | 7500 | 15000 |
| NET EFFECT | 2500(CR) | 2500(DR) | - |
JOURNAL ENTRY
| DATE | PARTICULARS | LF | DEBIT AMOUNT | CREDIT AMOUNT |
| Q's current a/c dr.. To P's current a/c (being adjustment entry passed) | 2500 | 2500 |