Azad and Benny are equal partners, Their capitals are Rs. 4,00,000 and Rs.7,80,000 respectively. After the...

 

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Azad and Benny are equal partners, Their capitals are Rs. 4,00,000 and Rs.7,80,000 respectively. After the accounts for the year have been prepared, it is discovered that interest @ 5% p.a. as provided in the partnership agreement has not been credited to the Capital Accounts before distribution of profit. It is decided to make an adjustment entry in the beginning of the next year. Record the necessary Journal entry. Azad and Benny are equal partners, Their capitals are Rs. 4,00,000 and Rs.7,80,000 respectively. After the accounts for the year have been prepared, it is discovered that interest @ 5% p.a. as provided in the partnership agreement has not been credited to the Capital Accounts before distribution of profit. It is decided to make an adjustment entry in the beginning of the next year. Record the necessary Journal entry.

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Table showing Adjustments to be made Partners Profits to be withdrawn Inter... View the full answer