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Accountancy
Ann-Chris

Mr.Surya, Ms. Arun& Mr.M 2:1:1.Their Capitals were Rs 60000 each. Mr.Arun& Mr.Madhan respectively. Ms. Surya should get monthly commission of Rs 100. The Interest on Capital & Drawing is at 8% & 10%p.a. The Interest on Drawing of partners was Rs 450, 550, 650​

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470 cents Harold Vaughn
Answer:

Answer:

Calculation of Opening Capital

                                                         X                            Y                        Z

Closing Capital                        1,50,000                  5,50,000           11,00,000

Add: Drawings                         6,00,000                 6,00,000            6,00,000

      (50,000*12)

Less : profits credited(4:1:1)      (2,00,000)             (50,000)               (50,000)

Opening capital with Interest   5,50,000              11,00,000             16,50,000

Less:Interest op.cap*10/110        (50.000)               (1,00,000)            (1,50,000)

Opening Capital                        5,00,000                10,00,000           15,00,000

Rectifying Entry is:-

    X's capital A/c   Dr. 1,10,000

      To Y's capital A/c                50,000

      To Z's capital A/c                 60,000

(being adjustment entry passed)

                       Table Showing Adjustments To be Made

Particulars  X  Y  Z

Interest on capital @12%  60,000 1,20,000   1,80,000

Share of profit  80,000  80,000    80,000

Total  1,40,000  2,00,000  2,60,000

Less:-Interest wrongly credited @ 10%  (50,000)  (1,00,000)  (1,50,000)

Less:-profits wrongly credited  (2,00,000)  (50,000)  (50,000)

Net Effect  (1,10,000)  50,000  60,000

42
Harold Vaughn
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