Incredible and Joyful are partners who share profit on a 60:40 ratio. At the end of 2021, the partnership books showed a net income of P150,000. It was disclosed however that the following errors and omissions were noted (see image below). How much is the total effect of the above errors in the capital of the partnership?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Incredible and Joyful are partners who share profit on a 60:40 ratio. At the end of 2021, the partnership books showed a net income of P150,000. It was disclosed however that the following errors and omissions were noted (see image below). How much is the total effect of the above errors in the capital of the partnership?
Accrued expense not recorded
Inventory understated
Advances from client recorded as
revenue
Unused supplies not taken up
Accrued revenue not recorded
Depreciation, understated
Depreciation overstated
2020
1,200
1,000
2,500
3,000
2021
3,000
5,000
3,500
Transcribed Image Text:Accrued expense not recorded Inventory understated Advances from client recorded as revenue Unused supplies not taken up Accrued revenue not recorded Depreciation, understated Depreciation overstated 2020 1,200 1,000 2,500 3,000 2021 3,000 5,000 3,500
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