A, B and C are partners sharing profits and losses in the ratio of 1:2:3 They have omitted interest - Accountancy - Accounting for Partnership Basic Concepts

Question

A, B and C are partners sharing profits and losses in the ratio of
1:2:3 They have omitted interest on capital @ 8% p a for the two
year ended 31st March 2016 Their fixed capitals were Rs 4,00,000 ,
Rs 6,00,000 and Rs 8,00,000 respectively Pass the necessary
adjusting entries

Ishi · Accepted Answer

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Calculation of interest on capital for 2 years:
A = (400000 x 8%) x 2 = Rs 64000
B = (600000 x 8%) x 2 = Rs 96000
C = (800000 x 8%) x 2 = Rs 128000

A, B and C are partners sharing profits and losses in the ratio of 1:2:3. They have omitted interest on capital @ 8% p.a for the two year ended 31st March 2016. Their fixed capitals were Rs. 4,00,000 , Rs. 6,00,000 and Rs. 8,00,000 respectively. Pass the necessary adjusting entries.