A, B, C and D are partners sharing profit and losses in the rate of 4 : 3:3:2. Their respective capitals on 31st March, 2021 were $3,000, $4,500, $6,000 and $4,500. After closing and finalizing the accounts it was found that interest on capital @ 6% per annum was omitted. Instead of altering the signed accounts it was decided to pass a single adjusting entry on 1st April, 2021 crediting or debiting the respective partners' accounts. Show the Journal Entry.

A, B, C and D are partners sharing profit and losses in the rate of 4 : 3:3:2. Their respective capitals on 31st March, 2021 were $3,000, $4,500, $6,000 and $4,500. After closing and finalizing the accounts it was found that interest on capital @ 6% per annum was omitted. Instead of altering the signed accounts it was decided to pass a single adjusting entry on 1st April, 2021 crediting or debiting the respective partners' accounts. Show the Journal Entry.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 38P

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