Ram and Shyam are partners with a capital of Rs 1,00,000 and Rs 1,60,000 on January 1, 2016 respectively. Ram introduced additional capital of Rs 30,000 on July 1, 2016 and another Rs 20,000 on October 31, 2016. Calculate interest on capital for Ram for Financial Year ending December 2016. The rate of interest is 9% p.a.

Q. On 31st March, 2018, Capital Accounts of

E, M

and

A

after making adjustments for profits, drawings, etc., were as

E - R s . 8, 00, 000; M - R s . 6, 00, 000

and

A - R s . 4, 00, 000

. Subsequently, it was found that interest on capital and interest on drawings had been omitted. The partners were entitled to interest on capital @

5 %

p.a. Drawings during the year were:

E - R s . 2, 00, 000; M - R s . 1, 50, 000

and

A - R s . 90, 000

. Interest on drawings chargeable to the partners were:

E - R s . 5, 000; M - R s . 3, 600

and

A - R s . 2, 000

. The net profit during the year amounted to

R s . 12, 00, 000

. The profit-sharing ratio of the partners was

3 : 2 : 1

.
Pass necessary adjustment entry for rectifying the above errors of omission. Show your workings.

On March 31, 2017 the balance in the capital accounts of Eluin, Monu and Ahmed, after making adjustments for profits, drawing, etc; were Rs 80,000, Rs 60,000 and Rs 40,000 respectively. Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. The partners were entitled to interest on capital @ 5% p.a. The drawings during the year were Eluin Rs 20,000; Monu, Rs 15,000 and Ahmed, Rs 9,000. Interest on drawings chargeable to partners were Eluin Rs 500, Monu Rs 360 and Ahmed Rs 200. The net profit during the year amounted to Rs 1,20,000. The profit sharing ratio was 3 : 2 : 1. Pass necessary adjustment entries.

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PARTICULARS	AMT RS.
Capital at the beginning of the year	65,000
less: drawings	14,000
less: int. on drawings	5,000
add: int.on capital	2,000
add: profit for the year	15,000

Capital at the end of the year	63,000

Capital on 1 January Rs.65,000, Interest on drawing Rs.5,000, Interest on Capital Rs.2,000, Drawings Rs.14,000, Profit for the year Rs.15,000. His capital as on 31 December will be _____________.

The correct option is B Rs.63,000 PARTICULARS AMT RS. Capital at the beginning of the year 65,000 less: drawings 14,000 less: int. on drawings 5,000 add: int.on capital 2,000 add: profit for the year 15,000 Capital at the end of the year 63,000

The correct option is B Rs.63,000
PARTICULARS AMT RS.
Capital at the beginning of the year 65,000
less: drawings 14,000
less: int. on drawings 5,000
add: int.on capital 2,000
add: profit for the year 15,000

Capital at the end of the year 63,000