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I need the answer as soon as possible Please do only if u can do in few minutes or else let others try. accounts Alex,
I need the answer as soon as possible
Please do only if u can do in few minutes or else let others try. accounts Alex, John and Sam are partners in a firm. Their capital on 1st April, 2011, stood at $1,00,000, 80,000 and 360,000 respectively. Each partner withdrew 35,000 during the financial year 2011-12. As per the provisions of their partnership deed : (a) John was entitled to a salary of 1,000 per month. (b) Interest on capital was to be allowed @10% per annum. (c) Interest on drawings was to be charged @4% per annum. (d) Profits and losses were to be shared in the ratio of their capitals. The net profit of 375,000 for the year ended 31st March 2012, was divided equall amongst the partners without providing for the terms of the deed. You are required to pass a Single Adjusting Journal Entry to rectify the error. (Show the working clearly)Step by Step Solution
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