Question

Manoj, Sahil and Dipankar are partners in a firm sharing profits and losses equally. They have omitted interest on Capital @ 10% per annum for three years on following capitals:

Manoj - 3,00,000

Sahil - 2,00,000

Dipankar - 1,00,000

Whose current account is to be debited?

• A. None of these
• B. Dipankar
• C. Sahil
• D. Manoj

Answer 1

The correct option is B

Dipankar

$\begin{array}{cccc}& \text{Manoj}& \text{Sahil}& \text{Dipankar}\\ \text{Amount to be given (Credited)}& & & \\ \text{Interest on Capital for 3 years}& 90,000& 60,000& 30,000\\ \text{Excess Profit taken back from the partners}& & & \\ \text{distributed in their profit sharing ratio}& 60,000& 60,000& 60,000\\ (90,000+60,000+30,000=1,80,000)& & & \\ \text{Net effect}& 30,000& 0& 30,000\\ & Cr& & Dr\end{array}$