A, B and C were partners in a firm. After closing the accounts for the year 2014, they realized that they have omitted to provide for interest on their fixed capitals for 3 years @ 15% p.a. which was necessary as per deed. Their fixed capitals were A $ 50,000, B $ 40,000, C $ 10,000. Their profit sharing ratios were 2012 – 2:1:1, 2013 – 6:5:4, 2014 – 5:3:2. Pass necessary journal entry to rectify the above omission.
A, B and C were partners in a firm. After closing the accounts for the year 2014, they realized that they have omitted to provide for interest on their fixed capitals for 3 years @ 15% p.a. which was necessary as per deed. Their fixed capitals were A $ 50,000, B $ 40,000, C $ 10,000. Their profit sharing ratios were 2012 – 2:1:1, 2013 – 6:5:4, 2014 – 5:3:2. Pass necessary journal entry to rectify the above omission.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A, B and C were partners in a firm. After closing the accounts for the year 2014, they realized that they have omitted to provide for interest on their fixed capitals for 3 years @ 15% p.a. which was necessary as per deed. Their fixed capitals were A $ 50,000, B $ 40,000, C $ 10,000. Their profit sharing ratios were 2012 – 2:1:1, 2013 – 6:5:4, 2014 – 5:3:2. Pass necessary journal entry to rectify the above omission.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education