# Anju, Manju and Mamta Are Partners Whose Fixed Capitals Were Rs 10,000, Rs 8,000 and Rs 6,000, Respectively. - Accountancy

Journal Entry

Anju, Manju and Mamta are partners whose fixed capitals were Rs 10,000, Rs 8,000 and Rs 6,000, respectively. As per the partnership agreement, there is a provision for allowing interest on capitals @ 5% p.a. but entries for the same have not been made for the last three years. The profit sharing ratio during there years remained as follows:

 Year Anju Manju Mamta 2014 4 3 5 2015 3 2 1 2016 1 1 1

Make necessary and adjustment entry at the beginning of the fourth year i.e. Jan. 2017.

#### Solution

Interest on Capital

Anuj =10000 xx 5/100 = "Rs"  500

Manju = 8000 xx 5/100 = "Rs" 400

Mamta =  6000 xx 5/100 = "Rs"  30

Year 2014

 Anuj Manju Mamta = Total Interest on Capital 500 400 300 1,200 Wrong distribution of Rs 1,200 (4:3:5) (400) (300) (500) = (1,200) 100 100 (200) NIL

Year 2015

 Anuj Manju Mamta = Total Interest on Capital 500 400 300 1,200 Wrong distribution of Rs 1,200 (3:2:1) (600) (400) (200) = (1,200) (100) NIL 100 NIL

Year 2016

 Anuj Manju Mamta = Total Interest on Capital 500 400 300 1,200 Wrong distribution of Rs 1,200 (1:1:1) (400) (400) (400) = (1,200) 100 NIL (100) NIL

 Anuj Manju Mamta 2014 100 100 (200) 2015 (100) NIL 100 2016 100 NIL (100) 100 100 (200)

 Date Particulars L.F Debit Amount Rs Credit Amount Rs Jan. 2017 Mamta's Capital A/c                    Dr.  To Anuj’s Capital A/c  To Manju Capital A/c(Adjustment of profit made) 200 100  100
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#### APPEARS IN

NCERT Class 12 Accountancy - Not-for-profit Organisation and Partnership Accounts
Chapter 2 Accounting for Partnership : Basic Concepts
Numerical Questions | Q 43 | Page 108