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Question : A and T are equal partners with fixed Capitals of Rs. 2,00,000 and Rs. 1,00,000, respectively. After closing the accounts for the year ending 31st March 2019. It was discovered that interest on capital 8% p.a. was omitted to Be provided. In the adjustment Entry:

Option 1: A will be credited By Rs. 16,000 and
T will be debited by Rs. 8,000

Option 2: A will be debited By Rs. 16,000 and
T will be debited by Rs. 8,000

Option 3: A will be credited By Rs. 4,000 and
T will be debited by Rs. 4,000

Option 4: A will be debited by Rs. 4,000 and
T will Be credited by Rs. 4,000.


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: A will be credited By Rs. 4,000 and
T will be debited by Rs. 4,000


Solution : Answer = A will be credited By Rs 4,000 and T will be debited by Rs 4,000.

Interest on capital @ 8% p.a. A T

Firm

Dr Cr Dr Cr Dr Cr
- 16,000 - 8,000 24,000 24,000(loss)
12,000 12,000 24,000 24,000
Loss (1:1) 12,000 16,000 12,000 8,000
4,000(Cr) 4,000(Dr)

Hence, the correct option is 3.

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