Chapter 12 On April 1, 2001, Lewis and Shawna formed a partnership. Lewis invested $35,000 cash and merchandise inventory with a current value of $36,000. Shawna invested $10,000 cash. Prepare each partner’s investment in general journal form.
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.
Chapter 12
- On April 1, 2001, Lewis and Shawna formed a
partnership . Lewis invested $35,000 cash and merchandise inventory with a current value of $36,000. Shawna invested $10,000 cash. Prepare each partner’s investment in general journal form.
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