Question

Ajay Vijay and Sanjay are partners with equal Ratio.
The balances in their capital Accounts being ₹1,20,000
₹ 100000 and ₹80000 respectively. In arriving at these figures the profit for the year ended 31st December 2012 was ₹96000.Their drawings were ajay ₹20000
Vijay ₹16000 and Sanjay ₹ 12000.
Subsequently the following omissions were noticed and
it was decided to bring them into accounts
(i) Interest on capital @10%p.a.
(ii)interest on drawings ajay ₹1000 vijay₹800 and sanjay ₹600
make 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.