Q (Calculation of interest on Capital when Closing Balances of Capital are given) A,B, C and D are partners - Accountancy - Accounting for Partnership Basic Concepts

Question

Q (Calculation of interest on Capital when Closing Balances of
Capital are given) A,B, C and D are partners sharing profits and
losses in the ratio of 4 : 3 : 3 :2 and their respective capital on
31st March,2016 were Rs 30,000 ; Rs 45,000 ; Rs 60,000 and Rs
45,000 After closing and finalising the accounts, it was found that
interest on capital @6% p a was omitted Instead of altering the
signed accounts it was decided to pass a single adjustment entery
on 1st April 2016 crediting or debiting the respective Partner's
Capital / Current Accounts

Neha Arora · Accepted Answer

Dear Student,

Journal

Particulars
L F
Debit Amount
Rs
Credit Amount
Rs

A’s Current A/c
Dr

1,800

To C’s Current A/c

900

To D’s Current A/c

900

(Adjustment made)

Particulars
A
B
C
D
Total

Interest on Capital
1,800
2,700
3,600
2,700
(10,800)

Right Share
1,800
2,700
3,600
2,700
(10,800)

Wrong Share
(3,600)
(2,700)
(2,700)
(1,800)
10,800

Journal
Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
A’s Current A/c	Dr.		1,800
To C’s Current A/c				900
To D’s Current A/c				900
(Adjustment made)

Particulars	A	B	C	D	Total
Interest on Capital	1,800	2,700	3,600	2,700	(10,800)
Right Share	1,800	2,700	3,600	2,700	(10,800)
Wrong Share	(3,600)	(2,700)	(2,700)	(1,800)	10,800