Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3 : 2. Following information is of the firm as on 31st March 2019: (5 marks)
| |
| Liabilities |
Rs |
Assets |
Rs |
| Mannu’s Capital |
30,000 |
|
Drawings: |
|
| Shristhi’s Capital |
10,000 |
40,000
|
Mannu |
4,000 |
|
| |
|
Shristhi |
2,000 |
6,000 |
| |
|
Other Assets |
34,000 |
| |
40,000 |
|
40,000 |
| |
|
|
|
Profit for the year ended 31st March, 2019 was Rs 5,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently omitted. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.