Note : Since the capitals are131. After the accounts of a partnership

1.	Note : Since the capitals are131. After the accounts of a partnership have been drawn up and the booksclosed off, it is discovered that for the years ended 31st March, 2016 and 2017, interesthas been credited to the partners upon their capitals at 5% per annum although, noprovision for interest is made in the partnership agreement.The amounts involved are :Interest CreditedYearAB. C₹₹20164,200 2,400 1,32020174,320 2,520 1,320You are required to put through adjusting entry as on 1st April, 2017, if the profitswere shared as follows in 2016, 2:2:1 and in 2017, 3: 4:3.
Answer» Answer: Explanation: C's current A/c DR. 600 To A's current A/c 400 To B's current A/c 200 (Being adjustment entry passed) Table showing Net Adjustments to be made Particulars A B C Adjustments in 2017 500 (200) (300) Adjustments in 2018 (100) 400 (300) Net Adjustments 400 200 (600) Table showing adjustments to be made in 2017 Particulars A B C Interest on capital (2500) (2000) (1500) Profits 3000 1800 1200 Adjustments 500 (200) (300) Table showing adjustments to be made in the year 2018 Particulars A B C Interest on [email protected]% (2500) (2000) (1500) Profits 2400 2400 1200 Adjustments (100) 400 ( 300)

Note : Since the capitals are131. After the accounts of a partnership have been drawn up and the booksclosed off, it is discovered that for the years ended 31st March, 2016 and 2017, interesthas been credited to the partners upon their capitals at 5% per annum although, noprovision for interest is made in the partnership agreement.The amounts involved are :Interest CreditedYearAB. C₹₹20164,200 2,400 1,32020174,320 2,520 1,320You are required to put through adjusting entry as on 1st April, 2017, if the profitswere shared as follows in 2016, 2:2:1 and in 2017, 3: 4:3.

Answer»

Answer:

Explanation:

C's current A/c DR. 600

To A's current A/c 400

To B's current A/c 200

(Being adjustment entry passed)

Table showing Net Adjustments to be made

Particulars A B C

Adjustments in 2017 500 (200) (300)

Adjustments in 2018 (100) 400 (300)

Net Adjustments 400 200 (600)

Table showing adjustments to be made in 2017

Particulars A B C

Interest on capital (2500) (2000) (1500)

Profits 3000 1800 1200

Adjustments 500 (200) (300)

Table showing adjustments to be made in the year 2018

Particulars A B C

Interest on [email protected]% (2500) (2000) (1500)

Profits 2400 2400 1200

Adjustments (100) 400 ( 300)