Q2. Nawab, Shanaya and Hritik are partners sharing profits and losses in the ratio of 5: 3: 2. The p

Q: What is the correct answer for CUET UG Accountancy Q2?

The correct answer is A. Interest on Drawings:Nawab: 20,000 * 10% * (6/12) = 1,000Shanaya: 15,000 * 10% * (6/12) = 750Hritik: 10,000 * 10% * (6/12) = 500Total Interest on Drawings = 2,250This interest should have been credited to partners in their profit-sharing ratio (5:3:2) if it had been charged initially. So, the amounts that *should have been credited* to their capital accounts are:Nawab: 2250 * (5/10) = 1125Shanaya:

Q: Q2. Nawab, Shanaya and Hritik are partners sharing profits and losses in the ratio of 5: 3: 2. The partnership deed provides for charging interest on drawings @10% p.a. The drawings of Nawab, Shanaya…

The correct answer is A. Interest on Drawings:Nawab: 20,000 * 10% * (6/12) = 1,000Shanaya: 15,000 * 10% * (6/12) = 750Hritik: 10,000 * 10% * (6/12) = 500Total Interest on Drawings = 2,250This interest should have been credited to partners in their profit-sharing ratio (5:3:2) if it had been charged initially. So, the amounts that *should have been credited* to their capital accounts are:Nawab: 2250 * (5/10) = 1125Shanaya:

Q: What are the options for this CUET UG Accountancy question?

A. Shanaya Capital A/c Dr. 75Hritik Capital A/c Dr. 50To Nawab Capital A/c 125 · B. Shanaya Capital A/c Dr. 125To Hritik Capital A/c Dr. 50To Nawab Capital A/c 75 · C. Nawab Capital A/c Dr. 125To Shanaya Capital A/c 75To Hritik Capital A/c 50 · D. Shanaya Capital A/c Dr. 150Hritik Capital A/c Dr. 100To Nawab Capital A/c 250

Question

Q2. Nawab, Shanaya and Hritik are partners sharing profits and losses in the ratio of 5: 3: 2. The partnership deed provides for charging interest on drawings @10% p.a. The drawings of Nawab, Shanaya and Hritik were 20,000, ₹15,000 and 10,000 respectively. After final accounts have been prepared, it was discovered that interest on drawings has not been charged. The adjusting entry will be:
(a) Shanaya Capital A/c Dr. 75
Hritik Capital A/c Dr. 50
To Nawab Capital A/c 125
(b) Shanaya Capital A/c Dr. 125
To Hritik Capital A/c Dr. 50
To Nawab Capital A/c 75
(c) Nawab Capital A/c Dr. 125
To Shanaya Capital A/c 75
To Hritik Capital A/c 50
(d) Shanaya Capital A/c Dr. 150
Hritik Capital A/c Dr. 100
To Nawab Capital A/c 250

FirstInTest · Accepted Answer

Interest on Drawings:Nawab: 20,000 * 10% * (6/12) = 1,000Shanaya: 15,000 * 10% * (6/12) = 750Hritik: 10,000 * 10% * (6/12) = 500Total Interest on Drawings = 2,250This interest should have been credited to partners in their profit-sharing ratio (5:3:2) if it had been charged initially. So, the amounts that *should have been credited* to their capital accounts are:Nawab: 2250 * (5/10) = 1125Shanaya: 2250 * (3/10) = 675Hritik: 2250 * (2/10) = 450Net Effect (Adjustment):Nawab: (Dr. 1,000) - (Cr. 1,125) = Cr. 125 (Short Debit, so Credit)Shanaya: (Dr. 750) - (Cr. 675) = Dr. 75 (Excess Debit, so Debit)Hritik: (Dr. 500) - (Cr. 450) = Dr. 50 (Excess Debit, so Debit)Adjusting Entry:Shanaya Capital A/c Dr. 75Hritik Capital A/c Dr. 50To Nawab Capital A/c 125

Answer

Shanaya Capital A/c Dr. 75Hritik Capital A/c Dr. 50To Nawab Capital A/c 125

Answer

Shanaya Capital A/c Dr. 125To Hritik Capital A/c Dr. 50To Nawab Capital A/c 75

Answer

Nawab Capital A/c Dr. 125To Shanaya Capital A/c 75To Hritik Capital A/c 50

Answer

Shanaya Capital A/c Dr. 150Hritik Capital A/c Dr. 100To Nawab Capital A/c 250

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