How would the capital accounts stand on the books after adjusting the interest at the end of the year?
8. A and B are partners sharing losses and gains equally. A invested $3,000, and B invested $4,000. They are ready to wind up the business. The firm owes $5,000, of which $1,000 is due A and $500 is due B. They have $7,000 in cash.
Prepare the accounts showing the closing.
XXVIII
1. The cash book of the Chicago Grocery Company on December 31, 19—, shows a balance of $10,280.72 on deposit with the National City Bank of New York. The bank statement received by the firm as of the same date shows a credit balance of $9,707.15.
The firm finds that the following checks had not cleared:
| Check | 1264 | $ 4.00 |
| 1329 | 52.80 | |
| 1499 | 1,080.70 | |
| 1510 | 108.07 | |
| 1511 | 2,500.00 | |
| 1512 | 3,281.70 | |
| 1513 | 2,223.77 | |
| 1514 | 100.80 | |
| 1515 | 150.17 |
The bank statement also shows the following items not entered in the company’s cash book:
| Charges: | |
| Telegram | $ 1.80 |
| Collection charges (5 items) | 1.17 |
| Check of Central Wholesale Grocery Co. | 80.79 |
| Credits: | |
| Interest on daily balance for December | 8.18 |
The company had mailed to the bank a note, due December 31, payable to the National City Bank of New York and had taken credit for it in the sum of $10,000. The bank had not yet credited the item.