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On march 31, 2022 after the close of accounts the capital of mountain, hill and rock stood in the book of the firm at 400000,300000 and 200000 respectively. subsequently,it was discovered that the internet on capital @10 % p.a. had been omitted. The profit for the year amounted to 150000 and the partners drawing had been mountain 20000,hill 15000and rock 10000.?
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On march 31, 2022 after the close of accounts the capital of mountain,...
Explanation of Capital Omission in Mountain, Hill and Rock Firm


Initial Capital


  • Mountain's capital: 400000

  • Hill's capital: 300000

  • Rock's capital: 200000



Omitted Interest on Capital


  • Interest rate: 10% p.a.

  • Interest on Mountain's capital: 40000

  • Interest on Hill's capital: 30000

  • Interest on Rock's capital: 20000



Profit and Partners' Drawings


  • Profit for the year: 150000

  • Mountain's drawing: 20000

  • Hill's drawing: 15000

  • Rock's drawing: 10000



Adjusted Capital


  • Mountain's adjusted capital: 430000 (400000 + 40000 - 20000)

  • Hill's adjusted capital: 315000 (300000 + 30000 - 15000)

  • Rock's adjusted capital: 215000 (200000 + 20000 - 10000)



The omission of interest on capital has resulted in an incorrect representation of the firm's financial position. Adjusting for the omitted interest, the partners' capital accounts must be adjusted accordingly. The firm's profit for the year has been calculated after adjusting the capital accounts.
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On march 31, 2022 after the close of accounts the capital of mountain, hill and rock stood in the book of the firm at 400000,300000 and 200000 respectively. subsequently,it was discovered that the internet on capital @10 % p.a. had been omitted. The profit for the year amounted to 150000 and the partners drawing had been mountain 20000,hill 15000and rock 10000.?
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On march 31, 2022 after the close of accounts the capital of mountain, hill and rock stood in the book of the firm at 400000,300000 and 200000 respectively. subsequently,it was discovered that the internet on capital @10 % p.a. had been omitted. The profit for the year amounted to 150000 and the partners drawing had been mountain 20000,hill 15000and rock 10000.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about On march 31, 2022 after the close of accounts the capital of mountain, hill and rock stood in the book of the firm at 400000,300000 and 200000 respectively. subsequently,it was discovered that the internet on capital @10 % p.a. had been omitted. The profit for the year amounted to 150000 and the partners drawing had been mountain 20000,hill 15000and rock 10000.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On march 31, 2022 after the close of accounts the capital of mountain, hill and rock stood in the book of the firm at 400000,300000 and 200000 respectively. subsequently,it was discovered that the internet on capital @10 % p.a. had been omitted. The profit for the year amounted to 150000 and the partners drawing had been mountain 20000,hill 15000and rock 10000.?.
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