It was discovered thatin arriving at the profit for 2006 , the following two items have been ignored.
i) outstanding expenses of Rs.3500
ii) accrued interest on investment of Rs.2,000
make journal entries relevant to adjustments.
Dear Student, your query seems to be incomplete. As you have not provided the number of partners as well as their profit sharing ratio.
However, the treatment of above transactions is as follows.
We advice you provide us with relevant details related to your query, so that we can help you better.
However, the treatment of above transactions is as follows.
Journal Entry | ||||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
||
All Partners’ Capital A/c | Dr. | [In Old Ratio] | ||||
To Outstanding Expenses A/c | ||||||
(Outstanding expenses recorded) | ||||||
Accrued Interest A/c | Dr. | |||||
To All Partners’ Capital A/c | [In Old Ratio] | |||||
(Accrued Interest recorded) | ||||||
We advice you provide us with relevant details related to your query, so that we can help you better.