Sarthaks Test
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On 31st March, 2016, after the closing of the accounts, the Capital Accounts of P, Q and R stood in the books of the firm at Rs.40,000; Rs.30,000 and Rs.20,000 respectively. Subsequently, it was discovered that interest on capital @ 5% had been omitted. Profit for the year ended 31st March, 2016 amounted to Rs.60,000 and the partners’ drawings had been PRs. 10,000, Q – Rs.7,500 and R- Rs.4,500. The profit-sharing ratio of P, Q and R is 3: 2: 1. Give necessary adjustment entries

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Working Notes:

1. calculation of capital at the beginnig ( as on April 01,2015)

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