Kia and Jimmy are forming a partnership to develop a water park. Kia contributes cash of $300,000 and land with the current value of $10,500,000. The partnership will assume Notes payable of $350,000 on the land. Jimmy contributes cash of $5,000,000 and equipment of market value $5,500,000. Journal the transactions and prepare a Balance Sheet as on date of Incorporation.
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.
Kia and Jimmy are forming a
contributes cash of $300,000 and land with the current value of $10,500,000.
The partnership will assume Notes payable of $350,000 on the land. Jimmy
contributes cash of $5,000,000 and equipment of market value $5,500,000.
Journal the transactions and prepare a
Incorporation.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
