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A and B Were Partners in a Firm Sharing Profits in the Ratio of 4:5. During the Year Ended 31-3-2015 a Withdrew Rs.19,000. Interest on A'S Drawings Was Rs.700. - Accountancy

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A and B were partners in a firm sharing profits in the ratio of 4:5. During the year ended 31-3-2015 A withdrew Rs.19,000. Interest on A's drawings was Rs.700.

Pass necessary Journal entry for charging interest on A's drawings assuming that the capitals of the partners were fixed.

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Solution

                                                                       Journal

Date Particulars L.F. Dr. (Rs) Cr. (Rs)
 

A’s Current A/c                                                                 Dr

          To Interest on Drawings A/c

(Being interest on drawings charged to A’s Capital A/c)

 

700

 

 

 

700

 

Concept: Methods of Capital Accounts - Fixed and Fluctuating Capital Method
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