On 31st March, 2019, the balance in the capital accounts of Asha, Nisha and Disha after making adjustments for profits and drawings were Rs. 1,50,000, Rs. 1,20,000 and Rs. 90,000 respectively. Subsequently, it was discovered that interest on capital and interest on drawings had been omitted.
The partners were entitled to interest on capital @ 10% p.a. Interest on drawings was also to be charged @ 10% p.a. The drawings during the year were : Asha Rs. 50,000, Nisha Rs. 60,000 and Disha Rs. 30,000. The net profit for the year ending 31st March, 2019 amounted to Rs. 1,00,000. The profit sharing ratio was 2 : 2 : 1.
Pass the necessary adjustment entry. Also show your workings clearly.
Marks-4, CBSE:2019-20/Comp/01/Q-16*
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