The Appropriate Format of the December 31, 2017 Closing Entry

question 51

Short Answer

The appropriate format of the December 31, 2017 closing entry for John & Hope Limited Liability Partnership, whose two partners had withdrawn their salaries from the partnership during the year, is:

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Definitions:

International Financial Reporting Standards

A set of accounting standards developed by the International Accounting Standards Board (IASB) that aim to make international financial reporting transparent and comparable.

SME

Refers to small and medium-sized enterprises, which are businesses with a limited number of employees and revenue, playing a significant role in the economy.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally accepted for financial reporting by publicly traded companies.

Financial Reporting Requirements

Legal or regulatory obligations that entities must follow when presenting their financial information to ensure transparency and accountability.