Ram shyam and mohan were partners in a firm

Asked by admin @ 13/08/2021 in Accountancy viewed by 453 People

Ram, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their capitals were fixed at ₹ 3,00,000, ₹ 1,00,000, ₹ 2,00,000. For the year ended 31st March, 2018, interest on capital was credited to them @ 9% instead of 10% p.a. The profit for the year before charging interest was ₹ 2,50,000. Show your working notes clearly and pass necessary adjustment entry.

Answered by admin @ 13/08/2021

The necessary adjustment entry is given below.

Explanation:

Given,

Ram, Shyam and Mohan sharing profits and losses in the ratio of 2 : 1 : 2

Their capitals were fixed at ₹ 3,00,000, ₹ 1,00,000, ₹ 2,00,000.

The interest on capital was credited to them @ 9% instead of 10% p.a

Calculation of Interest on Capital 10% p.a.

Interest on Ram's Capital

$=3,00,000 \times \frac{10}{100}=30,000$

Interest on Shyam's Capital

$=1,00,000 \times \frac{10}{100}=10,000$

Interest on Mohan's Capital

$=2,00,000 \times \frac{10}{100}=20,000$

Calculation of Interest on Capital 9% p.a.

Interest on Ram's Capital

$=3,00,000 \times \frac{9}{100}=27,000$

Interest on Shyam's Capital

$=1,00,000 \times \frac{9}{100}=9,000$

Interest on Mohan's Capital

$=2,00,000 \times \frac{9}{100}=18,000$

As per the adjustment entry given below, an amount of Rs. 200 and Rs. 400 has been obtained from Shyam and Mohan and must be credited to Ram's Capital account.

Ram shyam and mohan were partners in a firm

The necessary adjustment entry is given below.

Calculation of Interest on Capital 10% p.a.

Calculation of Interest on Capital 9% p.a.

Similar Questions

Ram shyam and mohan are partners in a firm

Rita and sobha are partners in a firm

Ram and shyam are walking on two perpendicular tracks

When partners current accounts are prepared in partnership firm

Annu baby and chetan are partners in a firm

The partners of a firm alia bhanu and chand

Bale and yale are equal partners of a firm

Mudit sudhir and uday are partners in a firm

Geet and meet are partners in a firm

A partner who gives his name to partnership firm

Leena madan and naresh were partners in a firm

Overcoming fixed mindset: a step-by-step guide to cultivating a growth mindset

Which of the following would best complete this list?

What had the king decided to do before he saw the spider

Describe the karez in your own words

Most viewed questions in Accountancy

Saregama ltd invited applications for issuing 80000 equity shares

Leena madan and naresh were partners in a firm

Business started with cash 8000 and plant & machinery 3000

Difference between fixed installment method and diminishing balance method

Which of the following will result in shareholders wealth maximization

Loan taken from dena bank should be credited to

Cash received from mohan journal entry

To show the cheque number while reconciling bank accounts press

The current investment are valued on closing date at

Enter the following transaction in the journal of mudit

The partners of a firm alia bhanu and chand

The major decision areas in supply chain management are

Alfa ltd invited applications for issuing 75000 equity shares

A company whose accounting year is the calendar year

Bookkeeping mainly concerns with which part of accounting process