Question

Priti, Revti and Shristhi are partners in a firm sharing profits in 3 : 2 : 1. Their capital accounts on 1st April, 2023, stood at ₹ 6,00,000 each. Each partner withdrew ₹ 50,000 during the financial year 2023-24.

As per the provisions of their partnership deed:

1. Interest on capital was to be allowed @ 5% per annum.
2. Interest on drawings was to be charged @ 8% per annum.

The net profit for the year ended 31st March 2024 was divided amongst the partners without providing for the terms of the deed.

In the rectifying entry:

पर्याय

• Cr. Priti ₹ 14,000 and Dr. Shristhi ₹14,000

• Dr. Priti ₹ 14,000 and Cr. Shristhi ₹ 14,000

• Cr. Priti ₹ 13,000 and Dr. Shristhi ₹ 13,000

• Dr. Priti ₹ 13,000 and Cr. Shristhi ₹ 13,000

Answer 1

Dr. Priti ₹ 14,000 and Cr. Shristhi ₹ 14,000

Explanation:

Calculate Interest on Capital:

Interest on capital for each partners = `6,00,000 xx 5/100`

= ₹ 30,000

Interest on drawing for each partners = `50,000 xx 8/100 xx 6/12`

= ₹ 2,000

Particulars	Priti (₹)	Revti (₹)	Shristhi (₹)	Firm (₹)
Interest on capitals (Cr.)	30,000	30,000	30,000	90,000
Interest on drawings (Dr.)	2,000	2,000	2,000	6,000
(Cr.)	28,000	28,000	28,000	84,000
Division of ₹ 84,000 in 3 : 2 : 1 (Dr.)	42,000	28,000	14,000	84,000
	(Dr.) 14,000	-	(Cr.) 14,000	-