Part A: Client 1

Bennett and Barney decide to form a partnership on 01/07/2021. Bennett and Barney operate on an accrual basis with the financial year from 1 July to the 30 June the following year.

Partnership proceeds are divided as Bennett (1/3) and Barney (2/3).

The Partnership provided an extract of their Trial balance and additional pertinent information of the partnership to be incorporated in the preparation of three financial accounts and statements at the close of the first financial year of operating 30 June 2022.

The financial data is uploaded in the Microsoft excel file FNSACC414_AT2_TMP_TQM_v2.

Ignore GST for this task.

With Strict adherence to GPC Bookkeeping Services organisational policies and Procedures complete the following:

1. Prepare the partnership Income Statement as at 30 June 2022.
2. Prepare the Profit and Loss Appropriation Account.
3. Prepare the Partners current accounts.
4. Prepare the Partnership Balance Sheet as at 30 June 2022.
5. Bennett and Barney have requested some information on writing their Partnership Polices and procedure manual.

Remember, the Partnership Deed (or Agreement) should articulate how the partnership will operate. These agreed areas of operation should also be documented in the organisational policies and procedures of a Partnership.

In the space provided below, advise Bennett and Barney of 3 critical financial aspects that must be included in the Partnership agreement and organisational policies and procedures.

Trial Balance of Bennett \& Barney as at 30 June 2022