[NCERT] Q 41 Solutions Accounting for Partnership Basic Concepts Class 12

Solution of Question number 41 of Accounting for Partnership Basic Concepts NCERT Accountancy solution Class 12 CBSE Board

Azad and Benny are equal partners. Their fixed capitals are ₹ 40,000 and ₹ 80,000 respectively. After the accounts for the year have been prepared it is discovered that interest at 5% p.a. as provided in the partnership agreement, has not been credited to the capital accounts before distribution of profits. It is decided to make and adjustment entry at the beginning of the next year. Record the necessary journal entry.

[Ans : Azad (Dr.) 1,000 and Benny (Cr.) 1,000]

Solution:-