# 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

Calculation of Opening Capital

X                            Y                        Z

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

(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

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

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