Raman, Manan and Naman were partners sharing profit in the ratio of $\displaystyle 2$ : $\displaystyle 1$ : 1. Raman withdrew ₹ $\displaystyle 3,000$ every month and Manan withdrew ₹ $\displaystyle 4,000$ every month. Interest on drawings @ $\displaystyle 6$% p.a. was charged whereas the partnership deed was silent about interest on drawings. Showing your working clearly, pass the necessary adjustment entry to rectify the error.

OR

Arun and Barun were partners sharing profits in the ratio of $\displaystyle 3$ : 2. Their capitals were ₹ $\displaystyle 50,000$ and ₹ $\displaystyle 30,000$ respectively. Partnership deed provided for interest on capital @ $\displaystyle 6$% p.a. to Arun and Barun and quarterly salary of ₹ $\displaystyle 1,000$ to Barun. Arun had given a loan of ₹ $\displaystyle 1,00,000$ on 1st October, $\displaystyle 2021$ to the firm without any agreement about interest. For the year $\displaystyle 2021$ $\displaystyle 22$, the profits earned were ₹ $\displaystyle 26$,800. Prepare Profit and Loss Appropriation Account of the firm for the year ended 31st March, 2022.

Books of Raman, Manan and Naman JOURNAL Date Particulars LF Dr. Cr. Amount Amount (₹) (₹) Raman’s Capital A/c Dr. $\displaystyle 180$ Naman’s Capital A/c Dr. $\displaystyle 630$ To Manan’s Capital A/c $\displaystyle 810$ (Adjustment entry for Interest on Drawings wrongly charged) Working Notes: Particulars Raman Manan Naman ₹ ₹ ₹ Interest on Drawings , now credited $\displaystyle 1,080$ $\displaystyle 1,440$ - Loss to be debited (₹$\displaystyle 2,520$ in $\displaystyle 2$:$\displaystyle 1$:$\displaystyle 1$) $\displaystyle (1,260)$ ($\displaystyle 630$) ($\displaystyle 630$) Adjustment $\displaystyle 180$ Dr $\displaystyle 810$ Cr $\displaystyle 630$ Dr $\displaystyle 5$ (b) Q. Arun and Barun were partners sharing…… Ans. Profit & Loss Appropriation A/c for the year ended on March $\displaystyle 31$, $\displaystyle 2022$ Dr Cr Particulars Amount Particulars Amount ₹ ₹ To Interest on Capital A/c By P & L A/c $\displaystyle 23,800$ ½ Arun -$\displaystyle 3,000$ (₹$\displaystyle 26,800$-₹$\displaystyle 3,000$) Barun-$\displaystyle 1,800$ $\displaystyle 4,800$ $\displaystyle 1$ To Salary A/c Barun $\displaystyle 4,000$ ½ To Profit transferred to Partners’ Capital A/c: Arun -$\displaystyle 9,000$ Barun-$\displaystyle 6,000$ $\displaystyle 15,000$ $\displaystyle 1$ $\displaystyle 23,800$ $\displaystyle 23,800$