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
| Interest on capital @ 9% p.a. | P | Q | R | Firm | ||||
| Dr | Cr | Dr | Cr | Dr | Cr | Dr | Cr | |
| - | 10,000 | - | 8,000 | - | 6,000 | 24,000 | ||
| loss(1:1:1) | 8,000 | - | 8,000 | - | 8,000 | - | 24,000(loss) | |
| 8,000 | 10,000 | 8,000 | 8,000 | 8,000 | 6,000 | 24,000 | 24,000 | |
| 2,000(Cr) | 2,000(Dr) | |||||||
Hence, the correct option is 4.
Related Questions
Trending Articles/News
