Adam, Bruce and Calvin were partners, sharing profits and losses in the ratio of 6:2:2. The following is the partnership's Balance Sheet as at December 31, 2022: Fixed Assets Current Assets Bank Financed by: Capital accounts: Adam Bruce Calvin Adam, Bruce and Calvin Balance Sheet as at December 31, 2022 S Required: Prepare the partners' capital accounts in columnar form. 110,000 108,000 (8,000) S 150,000 60,000 210,000 210,000 The partners agreed to dissolve their partnership on December 31, 2022. On the date of dissolution, they decided to dispose all the fixed assets at $30,000. As Calvin was insolvent, her capital deficiency was borne by Adam and Bruce according to their profit and loss sharing ratio.
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.
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