The following information relevant to adjustments in partnership final accounts for the financial year ended December 2019:

i. Interest paid in advance for January 2020.

ii. Commission received in advance.

iii. Wage amount was not received by three workers for December 2019.

iv. Service revenue for the month of December 2019 not yet received.

v. Depreciation of a Truck for the year 2019.

Required:

Suppose you are an accountant of a partnership business; the management is asking you to provide:

a) Explanation about the above five concepts.

b) Effects of treatment about the above five concepts in the Income Statement.

c) Effects of treatment about the above five concepts whether increase or decrease asset side or liability side in

the Statement of Financial Position.

ili. Question No: 2 10 Marks The following information relevant to adjustments in partnership final accounts for the financial year ended December 2019: i. Interest paid in advance for January 2020. ii. Commission received in advance. Wage amount was not received by three workers for December 2019. iv. Service revenue for the month of December 2019 not yet received. Depreciation of a Truck for the year 2019. Required: Suppose you are an accountant of a partnership business; the management is asking you to provide: a) Explanation about the above five concepts. b) Effects of treatment about the above five concepts in the Income Statement c) Effects of treatment about the above five concepts whether increase or decrease asset side or liability side in the Statement of Financial Position. (5 concepts x 2 Marks = 10 Marks) Page 3 of 5 V