Interest on Capital
Particulars | Eluin | Monu | Ahmed |
Closing capital (2017) | 80,000 | 60,000 | 40,000 |
Add: Drawings | 20,000 | 15,000 | 9,000 |
Less: Profit (3:2:1) | (60,000) | (40,000) | (20,000) |
Opening Capital(2018) | 40,000 | 35,000 | 29,000 |
Adjustment for Profit
Particulars | Eluin | Monu | Ahmed |
Interest on Capital | 2,000 | 1,750 | 1,450 |
Less: Interest on Drawings | (500) | (360) | (200) |
Distribution for 4,140 | 1,500 | 1,390 | 1,250 |
Less: wrong distribution for 4,140 | (2,070) | (1,380) | (690) |
570 | 10 | 560 | |
Journal Entries
Date | Particulars | L.F. | Amount | Amount | |
Eluin’s Capital A/c | Dr. | 570 | |||
To Monu’s Capital A/c | 10 | ||||
To Ahmed’s Capital A/c | 560 | ||||
(Adjustment for Profit) | |||||
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