Q. Mohit and Uday are partners in a firm sharing profits in the ratio 2 : 3. Their capital accounts as on April 1, 2015 showed balances of Rs. 70,000 and Rs. 60,000 respectively. The drawings of Mohit and Uday during year 2015-16 were Rs. 16,000 and Rs. 12,000 respectively. Both the amounts were withdrawn on 1st January 2016. It was subsequently found that the following items had been omitted while preparing the final the year ended 31st march 2016. 
(a) Interest on capitals @ 6% p.a, 
(b) Interest on drawings @ 6% p.a.; 
(c) Mudit was entitled to a commission of Rs. 4,000 for the whole year. 
Showing your working clearly pass a rectifying entry in the books of the firm.
 

Dear Student
 
Journal
 Date   Particulars     Debit   Credit 
         
  Uday's Capital A/c Dr.         3,408  
    To Mohit's Capital A/c             3,408
  (Being Adjustment made)      
         

Statement of Working
Particulars  Mohit   Uday   Total 
The amount that should have been actually credited or (Debited)      
Interest on Capital  @ 6% on Opening Capital                  4,200              3,600              7,800
Interest on Drawings @ 6% for 3 months on the respective drawings made on 01st Jan 16                    (240)                (180)                (420)
Commission                  4,000                     -                4,000
       
Total                  7,960              3,420            11,380
       
       
The Total Amount computed above already wrongly credited in PSR      
As Profit in Ratio 2:3                  4,552              6,828            11,380
       
Total                  4,552              6,828            11,380
       
Difference : to be credited or (debited)                  3,408            (3,408)                     -  
   Credit   Debit   

Please note that :
1. Capital Accounts are assumed to be fluctuating.

Regards
 

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