Question
Peter and Tom are partners in a firm sharing profits equally.Their capital accounts as on December 31,2019 showed balances of 60,000 and 50.000 respectively.After taking
Peter and Tom are partners in a firm sharing profits equally.Their capital accounts as on December 31,2019 showed balances of 60,000 and 50.000 respectively.After taking into account the profits of the year 2019 which amounted to 20,000,it was subsequently found that the following items have been left out while preparing the final account of the year ended 2019 L.The partners were entitled to interest on capitals@6% p.a. 2. The drawings of peter and tom for the year 2019 were 8,000 and 6,000,respectively. The interest on drawings was also to be charged@5%p.a. 3.Peter was entitled to salary of 5,000 and tom a commission of 2,000 for the whole year. It was decided to make the necessary adjustments to record the above omissions. Required Advice on the journal entries necessary to record the following items and prepare the profit and loss adjustment account and Partners'capital accounts (10 marks)
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