Nurul and Fiza are partners of a day care centre called Happy Kids, which they formed on 1 January 2017. Nurul contributed RM80,000 cash and equipment worth RM20,000 to the partnership. Fiza contributed RM30,000 cash and a building worth RM150,000. For financial year ended 31 December 2017, the partnership had a net income of RM150,000.
Nurul and Fiza are partners of a day care centre called Happy Kids, which they formed on 1 January 2017. Nurul contributed RM80,000 cash and equipment worth RM20,000 to the partnership. Fiza contributed RM30,000 cash and a building worth RM150,000. For financial year ended 31 December 2017, the partnership had a net income of RM150,000.
Nurul and Fiza are partners of a day care centre called Happy Kids, which they formed on 1 January 2017. Nurul contributed RM80,000 cash and equipment worth RM20,000 to the partnership. Fiza contributed RM30,000 cash and a building worth RM150,000. For financial year ended 31 December 2017, the partnership had a net income of RM150,000.
prepare the journal entry to record the investment of both partner in the partnership
Transcribed Image Text:Nurul and Fiza are partners of a day care centre called Happy Kids, which they formed on 1
January 2017. Nurul contributed RM80,000 cash and equipment worth RM20,000 to the
partnership. Fiza contributed RM30,000 cash and a building worth RM150,000. For financial
year ended 31 December 2017, the partnership had a net income of RM150,000.
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.
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