14Amal and Aman are partners of a firm sharing profit and loss in the ratio of 4:3. Their Balance Sheet Shows OMR 14,000 as Profit and Loss A/c in the Assets side. Pass the necessary journal entry in the books of accounts?a.Profit and Loss A/c 14,000 To Amal Capital A/c 8,000 Aman Capital A/c 6,000b.None of the optionsc.Amal Capital A/c 8,000 Aman Capital A/c 6,000 To Profit and Loss Appropriation A/c 14,000d.Amal Capital A/c 8,000 Aman Capital A/c 6,000 To Profit and Loss A/c 14,000

Debit balance of Profit or loss (or profit or loss on the asset side of the balance sheet): The…

Answered: Amal and Aman are partners of a firm…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Amal and Aman are partners of a firm sharing profit and loss in the ratio of 4:3. Their Balance Sheet Shows OMR 14,000 as Profit and Loss A/c in the Assets side. Pass the necessary journal entry in the books of accounts?

Profit and Loss A/c 14,000 To Amal Capital A/c 8,000 Aman Capital A/c 6,000

None of the options

Amal Capital A/c 8,000 Aman Capital A/c 6,000 To Profit and Loss Appropriation A/c 14,000

Amal Capital A/c 8,000 Aman Capital A/c 6,000 To Profit and Loss A/c 14,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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