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X, Y, Z are partners sharing profit and losses in the ratio 3:2:1. After final accounts have been prepared it was discovered that interest on drawings had not been taken into consideration. The IOD amounted to rs 250, rs 180, rs 100 respectively. Give adjustment entry.
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X, Y, Z are partners sharing profit and losses in the ratio 3:2:1. Aft...
Adjustment Entry for Interest on Drawings
Adjustment entry is required to be passed when interest on drawings has not been taken into consideration while preparing final accounts. In this case, X, Y, and Z are partners sharing profit and losses in the ratio of 3:2:1. The interest on drawings (IOD) amounted to rs 250, rs 180, rs 100 respectively. The adjustment entry for interest on drawings is as follows:
Adjustment Entry:
Interest on Drawings A/c Dr. rs 530
To X’s Capital A/c rs 300
To Y’s Capital A/c rs 200
To Z’s Capital A/c rs 30
Explanation:
The adjustment entry is passed to rectify the error of not considering interest on drawings while preparing the final accounts. The amount of interest on drawings is debited to the Interest on Drawings account, and the corresponding credit is given to the respective partner's capital account in their profit-sharing ratio. In this case, X, Y, and Z's capital accounts are credited rs 300, rs 200, and rs 30, respectively, as per their profit-sharing ratio of 3:2:1.
Conclusion:
Thus, the adjustment entry for interest on drawings is passed to rectify the error of not considering interest on drawings while preparing the final accounts. The Interest on Drawings account is debited, and the respective partner's capital accounts are credited in their profit-sharing ratio.
Adjustment entry is required to be passed when interest on drawings has not been taken into consideration while preparing final accounts. In this case, X, Y, and Z are partners sharing profit and losses in the ratio of 3:2:1. The interest on drawings (IOD) amounted to rs 250, rs 180, rs 100 respectively. The adjustment entry for interest on drawings is as follows:
Adjustment Entry:
Interest on Drawings A/c Dr. rs 530
To X’s Capital A/c rs 300
To Y’s Capital A/c rs 200
To Z’s Capital A/c rs 30
Explanation:
The adjustment entry is passed to rectify the error of not considering interest on drawings while preparing the final accounts. The amount of interest on drawings is debited to the Interest on Drawings account, and the corresponding credit is given to the respective partner's capital account in their profit-sharing ratio. In this case, X, Y, and Z's capital accounts are credited rs 300, rs 200, and rs 30, respectively, as per their profit-sharing ratio of 3:2:1.
Conclusion:
Thus, the adjustment entry for interest on drawings is passed to rectify the error of not considering interest on drawings while preparing the final accounts. The Interest on Drawings account is debited, and the respective partner's capital accounts are credited in their profit-sharing ratio.
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X, Y, Z are partners sharing profit and losses in the ratio 3:2:1. After final accounts have been prepared it was discovered that interest on drawings had not been taken into consideration. The IOD amounted to rs 250, rs 180, rs 100 respectively. Give adjustment entry.
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X, Y, Z are partners sharing profit and losses in the ratio 3:2:1. After final accounts have been prepared it was discovered that interest on drawings had not been taken into consideration. The IOD amounted to rs 250, rs 180, rs 100 respectively. Give adjustment entry. for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about X, Y, Z are partners sharing profit and losses in the ratio 3:2:1. After final accounts have been prepared it was discovered that interest on drawings had not been taken into consideration. The IOD amounted to rs 250, rs 180, rs 100 respectively. Give adjustment entry. covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X, Y, Z are partners sharing profit and losses in the ratio 3:2:1. After final accounts have been prepared it was discovered that interest on drawings had not been taken into consideration. The IOD amounted to rs 250, rs 180, rs 100 respectively. Give adjustment entry..
X, Y, Z are partners sharing profit and losses in the ratio 3:2:1. After final accounts have been prepared it was discovered that interest on drawings had not been taken into consideration. The IOD amounted to rs 250, rs 180, rs 100 respectively. Give adjustment entry. for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about X, Y, Z are partners sharing profit and losses in the ratio 3:2:1. After final accounts have been prepared it was discovered that interest on drawings had not been taken into consideration. The IOD amounted to rs 250, rs 180, rs 100 respectively. Give adjustment entry. covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X, Y, Z are partners sharing profit and losses in the ratio 3:2:1. After final accounts have been prepared it was discovered that interest on drawings had not been taken into consideration. The IOD amounted to rs 250, rs 180, rs 100 respectively. Give adjustment entry..
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