John, Savannah and Channing are partners sharing profits on a 5:3:2 ratio. On January 1, 2020, Amanda was admitted with a 20% share in profit. The old partners continue to participate in profits in their original ratios. For the year 2020, the partnership book showed a net income of P25,000. It was disclosed, however, that the following errors were committed. 2019 2020 Accrued Expenses not recorded at year-end 1,200 Inventory Overstated 3,100 Purchases not recorded, for which goods goods have been received and inventories 2,000 Income Received in advance not adjusted 1,500 Unused supplies not taken up at year-end 900 The share of partner John in the 2020 corrected net income is?
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.
John, Savannah and Channing are partners sharing profits on a 5:3:2 ratio. On January 1, 2020, Amanda was admitted with a 20% share in profit. The old partners continue to participate in profits in their original ratios.
For the year 2020, the
2019 2020
Accrued Expenses not recorded at year-end 1,200
Inventory Overstated 3,100
Purchases not recorded, for which goods goods have been received and inventories 2,000
Income Received in advance not adjusted 1,500 Unused supplies not taken up at year-end 900
The share of partner John in the 2020 corrected net income is?
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