Apprentice premium is 3000 and in adjustment it was written as it recieved on 1 april for 3 yrs what should be treatment
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Answer:
post ₹1000 on the credit side of profit and loss account and rest of the ₹2000 on the liability side of balance sheet
Explanation:
because it is for 3 years it's benefit is to be taken in 3 years so we have to adjust it in 3 years by posting ₹1000 each year in profit and loss account and the rest in balance sheet.. apprentice premium is income for the business. so that's why posted in the income side of profit and loss account..
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