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Fenny, Simran and Sonali are partners of a partnership firm. After distribution of the profit of the year it was realised that charging of interest on partner's drawing account respectively Rs. 2700, Rs. 1200, Rs. 1500 was missed out. 300 Write an entry for the rectification of error.?
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Fenny, Simran and Sonali are partners of a partnership firm. After dis...
**Rectification of Error: Charging Interest on Partner's Drawing Account**
To rectify the error of missing out on charging interest on partner's drawing account, the following entry needs to be recorded in the books of the partnership firm:
**Journal Entry:**
Date: [Date of rectification]
| Account Titles | L.F. | Debit (₹) | Credit (₹) |
|----------------|-----|------------|------------|
| Partner's Drawing Account - Fenny | | | 2700 |
| Partner's Drawing Account - Simran | | | 1200 |
| Partner's Drawing Account - Sonali | | | 1500 |
| Interest on Partner's Drawing Account | | 5400 | |
| To Partner's Capital Account - Fenny | | 2700 | |
| To Partner's Capital Account - Simran | | 1200 | |
| To Partner's Capital Account - Sonali | | 1500 | |
**Explanation:**
1. **Partner's Drawing Account - Fenny, Simran, and Sonali:**
- These accounts represent the individual partners' drawing accounts.
- The respective amounts of Rs. 2700, Rs. 1200, and Rs. 1500 are debited to these accounts.
- This is done to reduce their drawing balances and reflect the correct position.
2. **Interest on Partner's Drawing Account:**
- The interest on partner's drawing account is credited with the total amount of Rs. 5400.
- This entry is made to record the interest charged on the drawings.
- The interest is calculated based on the agreed-upon rate on drawings, which is usually mentioned in the partnership agreement.
3. **Partner's Capital Account - Fenny, Simran, and Sonali:**
- These accounts represent the individual partners' capital accounts.
- The respective amounts of Rs. 2700, Rs. 1200, and Rs. 1500 are credited to these accounts.
- This is done to reflect the interest charged on the drawings as an additional capital contribution by the partners.
By recording this rectification entry, the error of missing out on charging interest on partner's drawing account is corrected. The interest charged on the drawings is now appropriately accounted for, ensuring the accuracy of the firm's financial statements and the respective partners' capital balances.
To rectify the error of missing out on charging interest on partner's drawing account, the following entry needs to be recorded in the books of the partnership firm:
**Journal Entry:**
Date: [Date of rectification]
| Account Titles | L.F. | Debit (₹) | Credit (₹) |
|----------------|-----|------------|------------|
| Partner's Drawing Account - Fenny | | | 2700 |
| Partner's Drawing Account - Simran | | | 1200 |
| Partner's Drawing Account - Sonali | | | 1500 |
| Interest on Partner's Drawing Account | | 5400 | |
| To Partner's Capital Account - Fenny | | 2700 | |
| To Partner's Capital Account - Simran | | 1200 | |
| To Partner's Capital Account - Sonali | | 1500 | |
**Explanation:**
1. **Partner's Drawing Account - Fenny, Simran, and Sonali:**
- These accounts represent the individual partners' drawing accounts.
- The respective amounts of Rs. 2700, Rs. 1200, and Rs. 1500 are debited to these accounts.
- This is done to reduce their drawing balances and reflect the correct position.
2. **Interest on Partner's Drawing Account:**
- The interest on partner's drawing account is credited with the total amount of Rs. 5400.
- This entry is made to record the interest charged on the drawings.
- The interest is calculated based on the agreed-upon rate on drawings, which is usually mentioned in the partnership agreement.
3. **Partner's Capital Account - Fenny, Simran, and Sonali:**
- These accounts represent the individual partners' capital accounts.
- The respective amounts of Rs. 2700, Rs. 1200, and Rs. 1500 are credited to these accounts.
- This is done to reflect the interest charged on the drawings as an additional capital contribution by the partners.
By recording this rectification entry, the error of missing out on charging interest on partner's drawing account is corrected. The interest charged on the drawings is now appropriately accounted for, ensuring the accuracy of the firm's financial statements and the respective partners' capital balances.
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Fenny, Simran and Sonali are partners of a partnership firm. After distribution of the profit of the year it was realised that charging of interest on partner's drawing account respectively Rs. 2700, Rs. 1200, Rs. 1500 was missed out. 300 Write an entry for the rectification of error.?
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Fenny, Simran and Sonali are partners of a partnership firm. After distribution of the profit of the year it was realised that charging of interest on partner's drawing account respectively Rs. 2700, Rs. 1200, Rs. 1500 was missed out. 300 Write an entry for the rectification of error.? 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 Fenny, Simran and Sonali are partners of a partnership firm. After distribution of the profit of the year it was realised that charging of interest on partner's drawing account respectively Rs. 2700, Rs. 1200, Rs. 1500 was missed out. 300 Write an entry for the rectification of error.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Fenny, Simran and Sonali are partners of a partnership firm. After distribution of the profit of the year it was realised that charging of interest on partner's drawing account respectively Rs. 2700, Rs. 1200, Rs. 1500 was missed out. 300 Write an entry for the rectification of error.?.
Fenny, Simran and Sonali are partners of a partnership firm. After distribution of the profit of the year it was realised that charging of interest on partner's drawing account respectively Rs. 2700, Rs. 1200, Rs. 1500 was missed out. 300 Write an entry for the rectification of error.? 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 Fenny, Simran and Sonali are partners of a partnership firm. After distribution of the profit of the year it was realised that charging of interest on partner's drawing account respectively Rs. 2700, Rs. 1200, Rs. 1500 was missed out. 300 Write an entry for the rectification of error.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Fenny, Simran and Sonali are partners of a partnership firm. After distribution of the profit of the year it was realised that charging of interest on partner's drawing account respectively Rs. 2700, Rs. 1200, Rs. 1500 was missed out. 300 Write an entry for the rectification of error.?.
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Fenny, Simran and Sonali are partners of a partnership firm. After distribution of the profit of the year it was realised that charging of interest on partner's drawing account respectively Rs. 2700, Rs. 1200, Rs. 1500 was missed out. 300 Write an entry for the rectification of error.?, a detailed solution for Fenny, Simran and Sonali are partners of a partnership firm. After distribution of the profit of the year it was realised that charging of interest on partner's drawing account respectively Rs. 2700, Rs. 1200, Rs. 1500 was missed out. 300 Write an entry for the rectification of error.? has been provided alongside types of Fenny, Simran and Sonali are partners of a partnership firm. After distribution of the profit of the year it was realised that charging of interest on partner's drawing account respectively Rs. 2700, Rs. 1200, Rs. 1500 was missed out. 300 Write an entry for the rectification of error.? theory, EduRev gives you an
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