Question

Complete the following sentence.

"If, after the final accounts have been prepared, some omission or commissions are noticed say in respect of the interest on capital, interest on drawings, etc. necessary adjustments can be made in the partner's capital accounts through?

Options

• The Profit and Loss Adjustment Account

• The Profit and Loss Account

• Partners' Capital Account

• None of the above

Answer 1

The Profit and Loss Adjustment Account

Explanation:

If any omissions or commissions are discovered after the final accounts have been prepared, such as interest on capital, interest on drawings, partner's salary, commission, etc., necessary adjustments can be made in the partner's capital accounts through the Profit and Loss Adjustment Account to correct the situation.