{"id":50376,"date":"2024-04-15T23:09:24","date_gmt":"2024-04-15T23:09:24","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=50376"},"modified":"2024-04-15T23:09:24","modified_gmt":"2024-04-15T23:09:24","slug":"p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t\/","title":{"rendered":"P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;P will be credited with Rs. 2,000 and Q will be debited with Rs. 2,000&#8243; option2=&#8221;P will be debited with Rs. 2,000 and Q will be credited with Rs. 2,000&#8243; option3=&#8221;P will be debited with Rs. 2,000 and R will be credited with Rs. 2,000&#8243; option4=&#8221;P will be credited with Rs. 2,000 and R will be debited with Rs. 2,000&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>A. P will be credited with Rs. 2,000 and Q will be debited with Rs. 2,000<\/strong><\/p>\n<p>The interest on capitals for the year ending 31st March 2019 should have been:<\/p>\n<p>P = 5,00,000 * 9% * 12\/100 = Rs. 45,000<br \/>\nQ = 4,00,000 * 9% * 12\/100 = Rs. 36,000<br \/>\nR = 3,00,000 * 9% * 12\/100 = Rs. 27,000<\/p>\n<p>However, the interest on capitals was only provided @ 7% per annum, which means that P, Q and R were each underpaid by Rs. 2,000.<\/p>\n<p>The adjusting entry to correct this error would be:<\/p>\n<p>Interest on Capitals A\/c Dr. 6,000<br \/>\nTo P&#8217;s Capital A\/c 2,000<br \/>\nTo Q&#8217;s Capital A\/c 2,000<br \/>\nTo R&#8217;s Capital A\/c 2,000<\/p>\n<p>This entry would credit P&#8217;s Capital A\/c with Rs. 2,000 and debit Q&#8217;s Capital A\/c with Rs. 2,000.<\/p>\n<p>The reason for this is that P is entitled to a higher amount of interest than Q, because he has a higher capital. The interest on capitals is a charge on profits, and so it is allocated to the partners in proportion to their capitals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;P will be credited with Rs. 2,000 and Q will be debited with Rs. 2,000&#8243; option2=&#8221;P will be debited with Rs. 2,000 and Q will be credited with Rs. 2,000&#8243; option3=&#8221;P will be debited with Rs. 2,000 and R will be credited with Rs. 2,000&#8243; option4=&#8221;P will be credited with Rs. 2,000 and R &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t\/#more-50376\">Detailed Solution<span class=\"screen-reader-text\">P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-50376","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;P will be credited with Rs. 2,000 and Q will be debited with Rs. 2,000&#8243; option2=&#8221;P will be debited with Rs. 2,000 and Q will be credited with Rs. 2,000&#8243; option3=&#8221;P will be debited with Rs. 2,000 and R will be credited with Rs. 2,000&#8243; option4=&#8221;P will be credited with Rs. 2,000 and R ... Detailed SolutionP, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T23:09:24+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t\/","og_locale":"en_US","og_type":"article","og_title":"P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry","og_description":"[amp_mcq option1=&#8221;P will be credited with Rs. 2,000 and Q will be debited with Rs. 2,000&#8243; option2=&#8221;P will be debited with Rs. 2,000 and Q will be credited with Rs. 2,000&#8243; option3=&#8221;P will be debited with Rs. 2,000 and R will be credited with Rs. 2,000&#8243; option4=&#8221;P will be credited with Rs. 2,000 and R ... Detailed SolutionP, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry","og_url":"https:\/\/exam.pscnotes.com\/mcq\/p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T23:09:24+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t\/","url":"https:\/\/exam.pscnotes.com\/mcq\/p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t\/","name":"P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T23:09:24+00:00","dateModified":"2024-04-15T23:09:24+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/p-q-and-r-are-equal-partners-with-fixed-capitals-of-rs-500000-rs-400000-and-rs-300000-respectively-after-closing-the-accounts-for-the-year-ending-31st-march-2019-it-was-discovered-that-t\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"accounting","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/accounting\/"},{"@type":"ListItem","position":4,"name":"P, Q and R are equal partners with fixed capitals of Rs. 5,00,000, Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 7% per annum instead of 9% per annum. In the adjusting entry"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/50376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=50376"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/50376\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=50376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=50376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=50376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}