Adjusting Journal Entry
Date |
Particulars |
|
L.F. |
Amount (Dr.) |
Amount (Cr.) |
31 March |
Bobby’s Capital A/c
To Abhir’s Capital A/c
To Vineet’s Capital A/c
(Being omission of salary , wrong interest on capital credited , now profit corrected) |
Dr.
|
|
14,402 |
10,112
4,290 |
Working note:
Calculation of opening Capital
Particulars |
Abhir |
Bobby |
Vineet |
Closing capital
Add; drawings
Less; Profit |
8,00,000
2,40,000
60,000 |
6,00,000
1,00,000
60,000 |
4,00,000
1,00,000
30,000 |
Opening capital |
9,80,000 |
6,40,000 |
4,70,000 |
Interest on Capital @10p.a. |
98,000 |
64,000 |
47,000 |
Total Interest on Capital = 98,000 + 64,000 + 47,000 = 2,09,000
Calculation of opening Drawings:
Abhir = 20,000 × 12 × 6/100 × 5.5/12 = 6,600
Bobby = 50,000 × 2 × 6/100 × 9/12 = 4,500
Vineet = 1,00,000 × 6/100 × 5/12 = 2,500
Total interest on Drawing = 13,600
Total profit after Interest on drawing = 1,50,000 + 13,600 = 1,63,600
Interest on Drawing is 1,63,600 which is less than 2,09,000
Ratio of Interest on capital is 98,000 : 64,000 : 4,7000 = 98 : 64 : 47
Abhir= 1,63,600 × 98/209 = 76,712
Bobby= 1,63,600 × 64/209 = 50,098
Vineet = 1,63,600 × 47/209 = 36,790
Statement Adjustment
Particulars |
Abhir |
Bobby |
Vineet |
Interest on capital omitted
Interest on Drawing omitted |
76,712
6,600 |
50,098
4,500 |
36,790
2,500 |
Net amount to be Credited
Net loss of above omission |
70,112
60,000 |
45,598
60,000 |
34,290
30,000 |
Net effect |
10,112 |
14,402 |
4,290 |
Cr. |
Dr. |
Cr. |