x,y,z were partners sharing profit & losses equally .their respective capitals were Rs 15000,10000 & .5000. after closing accounts for the year 2012 it was discovered that the intrest on capital at the rate 20% p.a was omitted before distributing the profit. pass a single adjusting entry in the beginning of the year, so that the a/c of the previous years can be rectified.
| Statement Showing Adjustment | |||||
Particulars | A | B | C | Total | ||
Interest on Capital to be credited | (Cr.) | 3,000 | 2,000 | 1,000 | 6,000 | |
Sharing of above Loss (1 : 1: 1) | (Dr.) | (2,000) | (2,000) | (2,000) | (6,000) | |
Net Effect | 1,000 (Cr.) | - | (1,000) (Dr.) | NIL | ||
|
|
|
|
| ||
Adjusting Journal Entry
C's Capital A/c | Dr. | 1,000 |
| |
| To A's Capital A/c |
|
| 1,000 |