Hannah Freeman Proprietorship Balance Sheet June 1, 20Y3 Cash $ 65,000 Accounts receivable $125,000 Less: Allowance for doubtful accounts 7,200 117,800 Land 215,000 Equipment $ 78.000 Less: Accumulated depreciation-equipment 41,000 37,000 Total assets $434,800 Accounts payable $ 24,800 Notes payable 76,000 Hannah Freeman, capital 334,000 Total liabilities and owner's equity $434,800
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.
Recording partner's original investment
Hannah Freeman and Hugo Hernandez form a partnership by combining assets of their former businesses. The following
freeman obtained appraised values for the land and equipment as follows:
Land $320,000
Equipment 34,800
An analysis of the
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