A partnership employed an inexperienced bookkeeper. He has prepared the current account of one of the partners as follows: Current account Interest capital. 28,000. Salaries. 15,000 Balance and carried forward. 108, 700 151,700 Balance brought forward 2, 070 Drawings 62,000 Profit 87,000 151,700 The balance brought forward is entered correctly and the other entries are all correct amout that however, the bookkeeper is not very sure of the difference between the debits and credits for the current account. what is the corrected balance carried forward?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
A partnership employed an inexperienced bookkeeper.
He has prepared the current account of one of the partners as follows:
Current account
Interest capital. 28,000.
Salaries. 15,000
Balance and carried forward. 108, 700
151,700
Balance brought forward 2, 070
Drawings 62,000
Profit 87,000
151,700
The balance brought forward is entered correctly and the other entries are all correct amout that however, the bookkeeper is not very sure of the difference between the debits and credits for the current account. what is the corrected balance carried forward?
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