Q1. Mr. X has recorded good relations with his partners as an asset in the balance sheet? Is he violating any accounting principles? Why or why not support your answers with reasons? Q2. Javlon purchased a furniture for $10000 on credit? In books he passed an entry of Cash A/c debit to Furniture account credit $10000. Do you agree with the journal entry? If not tell the correct entry? Also pass a rectification entry? Q3. On December 31, Javlon Company, a partnership between Fogg and Shelhon, realized a $66,000 net income. According to the partnership agreement, the partners split the profits on a 3:2 basis. Determine each partner’s split and the journal entries you will make to record the split of net income.

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter4: Completing The Accounting Cycle
Section: Chapter Questions
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Q1. Mr. X has recorded good relations with his partners as an asset in the balance sheet? Is he violating any
accounting principles? Why or why not support your answers with reasons?
Q2. Javlon purchased a furniture for $10000 on credit? In books he passed an entry of Cash A/c debit to
Furniture account credit $10000. Do you agree with the journal entry? If not tell the correct entry? Also
pass a rectification entry?
Q3. On December 31, Javlon Company, a partnership between Fogg and Shelhon, realized a $66,000 net
income. According to the partnership agreement, the partners split the profits on a 3:2 basis. Determine
each partner’s split and the journal entries you will make to record the split of net income.

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