What is the aim and objective and importance of adjustment of partnership final account
Answers
hello!
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Answer:-⤵
↪↪↪importance or obejctive of adjustment:-⤵
↪This will easily show assets are overstated or understated are revalued.
↪This will show the liabilities are brought in the books at their correct values.
↪this will also helped in Unrecorded assets and liabilities of the firm are brought into the books of the firm
↪This help to identify the actual position of the firm is calculated.
↪It help to Profit and loss arriving on account of such revaluation up to the date of admission of a new partner may be adjusted in the partner’s capital accounts in their old profit sharing ratio.
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hope it will help u!
Answer:
the main purpose for adjusting entries to update your accounts to confirm with the accurate concept to if adjusting entries or not prepared some income expense asset and liability accounts may not reflect their true value then reported in the financial statement for this reason adjusting entries are necessary