Paul, Kumar, and Lakshman are partners in a firm, sharing profits and

Paul, Kumar, and Lakshman are partners in a firm, sharing profits and losses in the ratio of 3:2:1. After the preparation of final accounts, it was discovered that interest on drawing had not been taken into consideration. The interest on drawings of partners amounted to Rs. 600, Rs. 400 and Rs. 200. Give necessary adjustment journal entry.

Answer»

Items which are omitted while preparing P&L Appropriation A/c can be brought into accounts through P&L adjustment a/c by passing the following entry.