Question

If the interest on drawings is omitted to be recorded, what will be the journal entry?

Options

• Profit and Loss Adjustment A/c    Dr.
         To Partner's Capita/Current A/c
  (Being adjustment made for interest on drawings previously omitted, now carried out).

• Profit and Loss A/c    Dr.
        To Partner's Capita/Current A/c
  (Being adjustment made for interest on drawings previously omitted, now carried out).

• Partner's Capita/Current A/c   Dr.
        To Profit and Loss Adjustment A/c
  (Being adjustment made for interest on drawings previously omitted, now carried out).

• Profit and Loss Appropriation A/c  Dr.
        To Profit and Loss A/c
  (Being adjustment made for interest on drawings previously omitted, now carried out).

Answer 1

Partner's Capita/Current A/c   Dr.
      To Profit and Loss Adjustment A/c
(Being adjustment made for interest on drawings previously omitted, now carried out).