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Accounting of partnership firm

343 views 2 replies

Hardik Patel

B.Com CA Final

158 Points Joined April 2009

Hello Sir/Mam, Suppose Partnership firm is doing business since August, 2016. But legally its comes to existence on February 2017. So my question is what are the treatment of prior period Income earned and Expense incurred by partnership firm in their books of accounts? I am requesting you to please help me in this regards with proper provision.

Replies (2)

A. NAGARAJAN

CHARTERED ACCOUNTANTS

66 Points Joined December 2008

if the partnership deed has a preamble which states that the partnership has been carried on from Aug 16 orally and now the terms are put into writing, then the income and exp can be accounted against the partnership firm . other details such as name in which invoices are raised or bills are recevied is also important