1
Question
Mita and Usha are partners in a firm sharing profits in the ratio of 2 : 3. Their Capital Accounts as on 1st April, 2015 showed balances of ₹ 1,40,000 and ₹ 1,20,000 respectively. The drawings of Mita and Usha during the year 2015-16 were ₹ 32,000 and ₹ 24,000 respectively. Both the amounts were withdrawn on 1st January 2016. It was subsequently found that the following items had been omitted while preparing the final accounts for the year ended 31st March, 2016:
(a) Interest on Capital @ 6% p.a.
(b) Interest on Drawings @ 6% p.a.
(c) Mita was entitled to a commission of ₹ 8,000 for the whole year.
Showing your working clearly, pass a rectifying entry in the books of the firm.
(a) Interest on Capital @ 6% p.a.
(b) Interest on Drawings @ 6% p.a.
(c) Mita was entitled to a commission of ₹ 8,000 for the whole year.
Showing your working clearly, pass a rectifying entry in the books of the firm.
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Solution
Journal
Particular
L.F.
Debit Amount
(₹)
Credit Amount
(₹)
Usha’s Capital A/c
Dr.
6,816
To Mita’sCapital A/c
6,816
(Adjustment made)
Particular
Mita
Usha
Total
Interest on Capital @ 6% p.a.
8,400
7,200
(15,600)
Interest on Drawings @ 6% p.a.
(480)
(360)
840
Commission
8,000
–
(8,000)
Right Share
15,920
6,840
(22,760)
Wrong Share
(9,104)
(13,656)
22,760
Net Effect
6,816
(Cr.)
6,816
(Dr.)
Nil
|
Journal |
||||
|
Particular |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|
| Usha’s Capital A/c | Dr. |
6,816 |
|
|
|
To Mita’sCapital A/c |
|
6,816 |
||
| (Adjustment made) | ||||
|
Particular |
Mita |
Usha |
Total |
| Interest on Capital @ 6% p.a. |
8,400 |
7,200 |
(15,600) |
| Interest on Drawings @ 6% p.a. |
(480) |
(360) |
840 |
| Commission |
8,000 |
– |
(8,000) |
| Right Share |
15,920 |
6,840 |
(22,760) |
| Wrong Share |
(9,104) |
(13,656) |
22,760 |
|
Net Effect |
6,816 (Cr.) |
6,816 (Dr.) |
Nil |
|
|
|
|
|
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