9. Gilmore agree to join with Raymond and set up an internet café. The following are the investments of the partners: 1. Gilmore will invest ten sets of computers and a printer unit with a total list price of P275,000 but the cash price is only P260,000. He will also invest furniture and fixtures with a cost price of P58,000 less accumulated depreciation of P8,000. Fair market value of this is only P40,000. 2. Raymond will put up enough cash to make the total assets P500,000. 3. They further agree to recognize bonus so that both partners will have an interest over the partnership. Direction: a. Record the actual contribution of Gilmore. b. Record the investment of Raymond including the bonus transfer from Gilmore
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
9. Gilmore agree to join with Raymond and set up an internet café. The following are the investments of the partners:
1. Gilmore will invest ten sets of computers and a printer unit with a total list price of P275,000 but the cash price is only P260,000. He will also invest furniture and fixtures with a cost price of P58,000 less
2. Raymond will put up enough cash to make the total assets P500,000.
3. They further agree to recognize bonus so that both partners will have an interest over the
Direction:
a. Record the actual contribution of Gilmore.
b. Record the investment of Raymond including the bonus transfer from Gilmore.
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