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A and B are partners sharing profits on capital ratio. Their capitals were Rs 5,00,000 and Rs 7,00,000 respectively. They withdraw Rs 50,000 and 70,000 for the year ending 31st March 2006. Interest on drawings was provided at 8% p.a . Journalise.

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A's cap .....dr.2000 B's cap .....dr.2800 To Interest on Drawings 4800 (on average basis i.e 6/12 if withdrwan during the year).
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A capital a/c ...dr 2000 (50000*8%*6/12) B capital a/c ....dr 2800 To Interest on drawing 4800
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Meaning of partnership term
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