The current account of a partner has been written up as follows. Current account Interest on capital £2,200 Balance B/d £625 Salary £1,225 Drawings £6,350 Balance c/d £12,800 Profit share £9,250 What is the correct balance carried down when the errors are corrected?
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.
The current account of a partner has been written up as follows.
Current account
Interest on capital £2,200 Balance B/d £625
Salary £1,225 Drawings £6,350
Balance c/d £12,800 Profit share £9,250
What is the correct balance carried down when the errors are corrected?
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