| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Mannu’s Capital (30,000) | Drawings: | ||
| Shristhi’s Capital (10,000) | 40,000 | Mannu (4,000) | |
| Shresthi (2,000) | 6,000 | ||
| Other Assets | 34,000 | ||
| Total | 40,000 | Total | 40,000 |
Profit for the year ended 31st March, 2019 was Rs. 5,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently omitted. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.
Solution
