Homework Help is Here – Start Your Trial Now!
Business
Accounting
necessary adjustments. Pass necessary journal entries to rectify these errors.

necessary adjustments. Pass necessary journal entries to rectify these errors.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Q14:A & B were two partners, sharing profits and losses in the ratio of 3:2. Their respective fixed capitals were $ 1,00,000 and $ 60,000 respectively. After closing the accounts for the year 2014 it was discovered that interest on capital at the rate of 10% p.a. and salaries of $ 5,000 p.a. to each of them was omitted. It was decided to make necessary adjustments. Pass necessary journal entries to rectify these errors.
Transcribed Image Text:Q14:A & B were two partners, sharing profits and losses in the ratio of 3:2. Their respective fixed capitals were $ 1,00,000 and $ 60,000 respectively. After closing the accounts for the year 2014 it was discovered that interest on capital at the rate of 10% p.a. and salaries of $ 5,000 p.a. to each of them was omitted. It was decided to make necessary adjustments. Pass necessary journal entries to rectify these errors.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Changes and Error Analysis
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS