Capital interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2013 Interest shared to partners in Partners' capital account in their profit sharing ratio by mistake. Filed return.

Now what is the solution ?.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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04 October 2013 First compute the actual interest payable to each partner and sum that, if this sum is different to the Interest already disclosed in the return and effects the profit of the firm then file revise return, if the profit doesn't effects means only capital balances of the partner's individually effects but total of the capital shall be same, so you need not to file revise return in that case but have to pass adjustment entries to correct the capital balances of each individual partner's in the current running year by passing Journal entries.

So first please be confirm me by rectifying the mistake is any change in the profit of the firm and any effects to the balance sheet or not.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2013 Thank you very much

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