Brekke and Fig decide to organize a partnership. Brekke invests $30600 cash, and Fig contributes $23000 cash and equipment having a book value of $13000. Choose the entry to record Fig's investment in the partnership assuming the equipment has a fair value of $18600. Cash 23000 Fig, Capital 23000 Cash 23000 Equipment 18600 Fig, Capital 41600 Cash 23000 Equipment 13000 Fig, Capital 36000 Equipment 13000 Fig, Capital 13000
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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