Question

1)
Nohan Vijay and Anil are equal partners, the balances in their capital accounts
being * 30,000 25,000 and 20,000 respectively. In arriving at these figures,
the profits for the year ended 31st March, 2017, * 24,000 had already been
credited to partners in the proportion in which they share profits. Their drawings
were Mohan 5,000, Vijay * 4.000 and Anil R3,000. Subsequently, the following
omissions were noticed and it was decided to bring them into account.
Interest on Capital at 10% per annum.
Interest on Drawings was: Mohan 250, Vijay *200 and Anil R150.
Make the necessary corrections through a journal entry and show your working
clearly.​

Answer 1

Answer:

The fundamental advantage of principles-based accounting is that its broad guidelines can be practical for a variety of circumstances. Precise requirements can sometimes compel managers to manipulate the statements to fit what is compulsory.