Monty invests personally owned equipment, which originally cost $222300 and has accumulated depreciation of $59400 in the Monty and Eggers partnership. Both partners agree that the fair value of the equipment was $120600. The entry made by the partnership to record Monty's investment should be Equipment Accumulated Depreciation-Equipment Monty, Capital Equipment Monty, Capital Equipment Loss on Purchase of Equipment Accumulated Depreciation-Equipment Monty, Capital Equipment Monty, Capital 222300 120600 120600 42300 59400 162900 59400 162900 120600 222300 162900
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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