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Jack, Henry and Leo were partners profit sharing in the ratio of 2:2:1. Following omissions were disclosed after the books were closed : Salary of $ 1,500 was payable to Jack but was omitted. (i) (ii) Interest on capital @ 10% have been omitted. The fixed capitals of Jack, Henry & Leo were - $ 30,000; - $ 40,000; and $ 35,000 respectively. Profits before considering the above items were $ 30,000 which was already distributed among the partners. Pass necessary journal entries to rectify the above omissions.

Jack, Henry and Leo were partners profit sharing in the ratio of 2:2:1. Following omissions were disclosed after the books were closed : Salary of $ 1,500 was payable to Jack but was omitted. (i) (ii) Interest on capital @ 10% have been omitted. The fixed capitals of Jack, Henry & Leo were - $ 30,000; - $ 40,000; and $ 35,000 respectively. Profits before considering the above items were $ 30,000 which was already distributed among the partners. Pass necessary journal entries to rectify the above omissions.

FINANCIAL ACCOUNTING
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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Jack, Henry and Leo were partners profit sharing in the ratio of 2:2:1. Following omissions were disclosed after the books were closed : Salary of $ 1,500 was payable to Jack but was omitted. (i) (ii) Interest on capital @ 10% have been omitted. The fixed capitals of Jack, Henry & Leo were - $ 30,000; - $ 40,000; and $ 35,000 respectively. Profits before considering the above items were $ 30,000 which was already distributed among the partners. Pass necessary journal entries to rectify the above omissions.
Transcribed Image Text:Jack, Henry and Leo were partners profit sharing in the ratio of 2:2:1. Following omissions were disclosed after the books were closed : Salary of $ 1,500 was payable to Jack but was omitted. (i) (ii) Interest on capital @ 10% have been omitted. The fixed capitals of Jack, Henry & Leo were - $ 30,000; - $ 40,000; and $ 35,000 respectively. Profits before considering the above items were $ 30,000 which was already distributed among the partners. Pass necessary journal entries to rectify the above omissions.
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