A and B are partners in a firm sharing profits and losses in the ratio of 3:2. The following was the Balance Sheet of the firm as on 31-3-2010.
Liabilities |
Amount Rs |
Assets |
Amount Rs |
Capital A
B |
60,000
20,000 |
Sundry Assets |
80,000 |
|
80,000 |
|
80,000 |
The profits Rs. 30,000 for the year ended 31-3-2010 were divided between the partners without allowing interest on capital @ 12% p.a. and salary to A @ Rs. 1,000 per month. During the year A withdrew Rs. 10,000 and B Rs. 20,000. Pass the necessary adjustment journal entry and show your working clearly.
Date |
Particulars |
LF |
Debit (Rs) |
Credit (Rs) |
|
B’s capital a/c Dr
To a’s capital a/c
(being interest on capital and salary unpaid adjusted.)
|
|
5280 |
5280 |
Working Notes
Calculation of opening Capital
PARTICULARS |
A |
B |
Capital closing balance Less profit
Add drawings
Capital opening balance
|
60,000 18,000
|
20,000 12,000
|
42,000 10,000 |
8,000 20,000 |
|
52,000 |
28,000 |
Calculation of Net amount to be adjusted:
Particulars |
Partner A’s a/c |
Partner B’s a/c |
Firm a/c |
|||
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
|
Interest on capital |
|
6,240 |
|
3,360 |
9,600 |
|
Salary to A |
|
12,000 |
|
|
12,000 |
|
|
12,960 |
|
8,640 |
|
|
21,600 |
Total |
12,960 |
18,240 |
8,640 |
3,360 |
21,600 |
21,600 |
Net amount to be adjusted |
|
5280(Cr) |
5280(Dr) |
|
|
|