REQUIRED: Give the correcting compound entry.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 2EA: The partnership of Chase and Chloe shares profits and losses in a 70:30 ratio respectively after...
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3.10 Partners A and B share profits 3:1 after annual salary allowances of
P 4,000 and P 6,000, respectively. If profits are not adequate to meet
the salary allowances, the entire profit is to be divided using the
salary ratio. The net profit reported during the year amounted to
P 9,000. The following year, prior to the closing of the books, It was
ascertained that the net income for the previous year did not reflect
the overstatement in depreciation by P 3,600 and an understatement
in the ending inventory by P 800.
REQUIRED: Give the correcting compound entry.
Transcribed Image Text:3.10 Partners A and B share profits 3:1 after annual salary allowances of P 4,000 and P 6,000, respectively. If profits are not adequate to meet the salary allowances, the entire profit is to be divided using the salary ratio. The net profit reported during the year amounted to P 9,000. The following year, prior to the closing of the books, It was ascertained that the net income for the previous year did not reflect the overstatement in depreciation by P 3,600 and an understatement in the ending inventory by P 800. REQUIRED: Give the correcting compound entry.
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