Question

Tom and Harry were partners in a firm sharing profits in the ratio of 5:3. During the year ended 31.3.2015 Tom had withdrawn Rs.40,000. Interest on his drawings amounted to Rs.2,000.

Pass necessary journal entry for charging interest on drawings assuming that the capitals of the partners were fluctuating.

Answer 1

Journal

Date	Particulars	L.F.	Dr.(Rs.)	Cr.(Rs.)
	Tom's Capital A/c                                                                             Dr            To Interest on Drawings A/c (Being interest on drawings charged to Tom’s Capital A/c)		2,000	2,000