Question : P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019. It was discovered that interest on capital @ 7% instead of 9% p.a. In the adjustment entry.
Option 1: P will be credited by Rs. 2,000 and Q will be debited by Rs. 2,000.
Option 2: P will be debited by Rs. 2,000 and Q will be credited by Rs. 2,000
Option 3: P will be debited by Rs. 2,000 and R will be credited by Rs. 2,000.
Option 4: P will Be credited By Rs. 2,000 and R will Be debited by Rs. 2000
Correct Answer: P will Be credited By Rs. 2,000 and R will Be debited by Rs. 2000
Solution : Answer = P will Be credited By Rs 2,000 and R will Be debited by Rs 2000 R's current a/c Dr 2,000 To P's current a/c 2,000
Hence, the correct option is 4.
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:
Question : Sharma, Verma and Goyal are partners in a firm. On 1st April 2012 the balances in their Capital Accounts were as follows: Sharma Rs. 4,00,000; Verma Rs. 4,20,000 and Goyal Rs. 3,70,000. The firm closes its accounts every year on 31st March. Verma died on 30th
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile