Bookkeeping: the Principles And Practice of Double Entry; With Exercises ...
Bookkeeping: the Principles And Practice of Double Entry; With Exercises ...
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2,370 Jan. I. — By Balance ... 2,000 Dec.3f.— „ Interest ... 100 „ P.&L.A/c 270 ;f2,370 ;f2,37o 1905.
Jan. I.— By Balance... ;f2,37o On comparing the results with those shown in the first example of division of profits, it will be seen that, when interest on capital is charged, it makes a con- siderable diflFerence in favour of A., who has the larger capital, but does not aflFect the total of the two Capital Accounts taken together.
If there had been a loss, each partner would still have been e...ntitled to interest on his capital (in the absence of agreement to the contrary), even if the charging of interest converted a profit into a loss.
Any sums drawn by the partners during the year would be charged against their Drawing Accounts, and transferred at the end of the year to their respective Capital Accounts, as shown in the previous chapter.
Exercises X, to XI L should now be worked.
What to read after Bookkeeping: the Principles And Practice of Double Entry; With Exercises ...?
You can find similar books in the "Read Also" column, or choose other free books by L Whittem Leslie Whittem Hawkins to read online
To quickly assess the difficulty of the text, read a short excerpt:
2,370 Jan. I. — By Balance ... 2,000 Dec.3f.— „ Interest ... 100 „ P.&L.A/c 270 ;f2,370 ;f2,37o 1905.
Jan. I.— By Balance... ;f2,37o On comparing the results with those shown in the first example of division of profits, it will be seen that, when interest on capital is charged, it makes a con- siderable diflFerence in favour of A., who has the larger capital, but does not aflFect the total of the two Capital Accounts taken together.
If there had been a loss, each partner would still have been e...ntitled to interest on his capital (in the absence of agreement to the contrary), even if the charging of interest converted a profit into a loss.
Any sums drawn by the partners during the year would be charged against their Drawing Accounts, and transferred at the end of the year to their respective Capital Accounts, as shown in the previous chapter.
Exercises X, to XI L should now be worked.
What to read after Bookkeeping: the Principles And Practice of Double Entry; With Exercises ...?
You can find similar books in the "Read Also" column, or choose other free books by L Whittem Leslie Whittem Hawkins to read online
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