ILLUSTRATION 3. A and B are partners sharing profits in the ratio of 5 : 3. Following is the Balance Sheet of the Firm on 31-3-2015 : BALANCE SHEET as at 31-3-2015 Liabilities $ Assets Сapital: A...

ILLUSTRATION 3. A and B are partners sharing profits in the ratio of 5 : 3. Following is the Balance<br>Sheet of the Firm on 31-3-2015 :<br>BALANCE SHEET<br>as at 31-3-2015<br>Liabilities<br>$<br>Assets<br>Сapital:<br>A<br>Drawings<br>80,000<br>20,000<br>5,000<br>3,000<br>92,000<br>А<br>B<br>Other Assets<br>1,00,000<br>1,00,000<br>Profit for the year 2014-15 was $ 16,000 and was divided between the Partners as per agreed ratio, but<br>interest on capital @ 5% p.a. and on drawings @ 6% was inadvertently omitted. Interest on drawings may<br>be calculated on an average basis for 6 months.<br>You are required to pass Journal Entry(ies)to make the adjustments in the Capital Accounts of A and<br>В.<br>B.<br>

Extracted text: ILLUSTRATION 3. A and B are partners sharing profits in the ratio of 5 : 3. Following is the Balance Sheet of the Firm on 31-3-2015 : BALANCE SHEET as at 31-3-2015 Liabilities $ Assets Сapital: A Drawings 80,000 20,000 5,000 3,000 92,000 А B Other Assets 1,00,000 1,00,000 Profit for the year 2014-15 was $ 16,000 and was divided between the Partners as per agreed ratio, but interest on capital @ 5% p.a. and on drawings @ 6% was inadvertently omitted. Interest on drawings may be calculated on an average basis for 6 months. You are required to pass Journal Entry(ies)to make the adjustments in the Capital Accounts of A and В. B.

Jun 10, 2022

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ILLUSTRATION 3. A and B are partners sharing profits in the ratio of 5 : 3. Following is the Balance Sheet of the Firm on 31-3-2015 : BALANCE SHEET as at 31-3-2015 Liabilities $ Assets Сapital: A...

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