A, B, C and D are partners sharing profit and losses in the rate of 4 : 3:3:2. Their respective capitals on 31st March, 2021 were $3,000, $4,500, $6,000 and $4,500. After closing and finalizing the accounts it was found that interest on capital @ 6% per annum was omitted. Instead of altering the signed accounts it was decided to pass a single adjusting entry on 1st April, 2021 crediting or debiting the respective partners' accounts. Show the Journal Entry.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A, B, C and D are partners sharing profit and
losses in the rate of 4:3 :3:2. Their
respective capitals on 31st March, 2021 were
$3,000, $4,500, $6,000 and $4,500. After
closing and finalizing the accounts it was
found that interest on capital @ 6% per
annum was omitted. Instead of altering the
signed accounts it was decided to pass a
single adjusting entry on 1st April, 2021
crediting or debiting the respective
partners' accounts. Show the Journal Entry.
Transcribed Image Text:A, B, C and D are partners sharing profit and losses in the rate of 4:3 :3:2. Their respective capitals on 31st March, 2021 were $3,000, $4,500, $6,000 and $4,500. After closing and finalizing the accounts it was found that interest on capital @ 6% per annum was omitted. Instead of altering the signed accounts it was decided to pass a single adjusting entry on 1st April, 2021 crediting or debiting the respective partners' accounts. Show the Journal Entry.
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