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    Statement Showing The Adjustment To Be Made: '.J, Oot)

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    khgngy5bbk
    The document provides an example of adjusting entries for a partnership firm. It shows the calculation of interest on partner's capitals and drawings. The example calculates interest earned on capitals at 10% and interest charged on drawings at 6% for two partners, Alka and Archana, for the year ended 31 March 2019.

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    Statement Showing The Adjustment To Be Made: '.J, Oot)

    Uploaded by

    khgngy5bbk
    7 views1 page
    The document provides an example of adjusting entries for a partnership firm. It shows the calculation of interest on partner's capitals and drawings. The example calculates interest earned on capitals at 10% and interest charged on drawings at 6% for two partners, Alka and Archana, for the year ended 31 March 2019.

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    The document provides an example of adjusting entries for a partnership firm. It shows the calculation of interest on partner's capitals and drawings. The example calculates interest earned on capitals at 10% and interest charged on drawings at 6% for two partners, Alka and Archana, for the year ended 31 March 2019.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views1 page

    Statement Showing The Adjustment To Be Made: '.J, Oot)

    Uploaded by

    khgngy5bbk
    The document provides an example of adjusting entries for a partnership firm. It shows the calculation of interest on partner's capitals and drawings. The example calculates interest earned on capitals at 10% and interest charged on drawings at 6% for two partners, Alka and Archana, for the year ended 31 March 2019.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    ACCour~Tlf,b FOR FART! ERSHIP FIR viS - U1 Af ENTALS 1.

    81
    --------------------------- ------------
    STATEMENT SHOWING THE ADJUSTMENT TO BE MADE

    Interest on Capitals
    Less: Interest on drawings
    4,000'.J,oot)
    (-) 500 (-) 360 (-)
    # '
    9,000
    (-) 1,060
    (Cr.) 3,500 2;640 1,800 7,940
    Division of firm's loss of ,7,940 in the
    ratioof3: 2: 1 (Dr.) (-) 3,970 (-) 2,647 (-) 1,323
    (Dr.) 470 (Dr.) 7 (Cr.) 477
    Adjusting Entry :-

    2022
    April 1 Monu' s Current Ale Dr. 7
    To Ahmed's Current Ale 477
    (Adjustment on account of omission of the interest on
    capitals and drawings in the accounts).

    ILLUSTRATION 62.
    The capital accounts of Alka and Archana showed credit balances of t4,00,000
    and t3,00,000 respectively, after taking into account drawings and net profit of
    ,2,00,000. The drawings of the partners during the year 2018-19 were:
    (i) Alka withdrew tl0,000 at the end of each quarter.
    (iz) Archana' s drawings were : {
    31st May, 2018 8,000
    Jst November, 2018 7,000
    Ist February, 2019 5,000
    Calculate interest on partners' capitals @ 10% p.a. and interest on partners'
    drawings@6% p.a. for the year ended 31st Iv1arch, 2019.
    (C.B.S.E. 2020, Kolkata, Lucknow)
    SOLUTION:
    Calculation of OJHming Capital~:
    - .
    __ r_art5~uj~rsn ;WJ~

    Closing Capitals
    Add : Drawings
    4,00,000
    40,000
    '
    3,00,000
    20,000
    Less : Profits (t2,00,000 in I : 1) o,00,000) l (1,00,000)
    Opening Capitols 3,40,000 ! 2,20,0
    34,000
    ----
    Interest on Capital @ I0% p.a. 22,0

    Interest on Drawings :
    Alka's Interest on Drawings= 40,000 x 1~0 x ;; = ~900

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