Question

On 1st April, 2023, the capitals of Monika and Shreya were ₹ 4,00,000 and ₹ 2,00,000, respectively. They divided profits in the ratio of 3 : 2. Profits for the year ended 31st March, 2024, were ₹ 3,00,000, which have been duly distributed among the partners, but the following transactions were not passed through the books:

1. Interest on capitals @ 8% p.a.
2. Interest on drawings of Monika ₹ 8,000.
3. Monika is to be paid a salary of ₹ 15,000 per quarter.

In the adjustment entry:

पर्याय

• Cr. Monika ₹ 24,000 and Dr. Shreya ₹ 24,000

• Dr. Monika ₹ 24,000 and Cr. Shreya ₹ 24,000

• Cr. Monika ₹ 6,000 and Dr. Shreya ₹ 6,000

• Dr. Monika ₹ 6,000 and Cr. Shreya ₹ 6,000

Answer 1

Cr. Monika ₹ 24,000 and Dr. Shreya ₹ 24,000

Explanation:

Calculate interest on capital:

Interest on Monika’s capital = `4,00,000 xx 8/100`

= ₹ 32,000

Interest on Shreya’s capital = `2,00,000 xx 8/100`

= ₹ 16,000

Particulars	Monika (₹)	Shreya (₹)	Total (₹)
Interest on capital (Cr.)	32,000	16,000	48,000
Salary to Monika (15,000 × 4)	60,000	−	60,000
	92,000	16,000	1,08,000
Less: Interest on drawings (Dr.)	8,000	−	−
(Cr.)	84,000	16,000	1,00,000
Division of the firm’s loss of ₹ 1,00,000 in 3 : 2 (Dr.)	60,000	40,000	1,00,000
	(Cr.) 24,000	(Dr.) 24,000	−