On December 31, 2021, A&B Partnership has net income amounting to P350,450. Adjustments and correction are necessary for the following data to update the net income: 1. Insurance expense account has a debit balance of P4,550, P550 is still unexpired. 2. Service revenue earned but not yet billed as of December 31, 2021. P27,840 3. The Uneamed Service Revenue has a balance of P8.500, and P2,500 has already been earned 4. The correct but unrecorded Depreciation for the year amounted to P8.450. 5. The total payroll for the year in the amount of P5.600 was erroneously recorded in the books as P6,500. 6. The Allowance for Doubtful Accounts was taken up in the books at P2.350 instead of P3.250 After the adjustments and correction had been made how much is the adjusted and correct
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.
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