Prepare the balance sheet for GL Partnership on January 1, 2020, immediately after the partnership entries are prepared.
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.
Graydon and Logan formed the GL
Graydon's assets Logan's assets
Book Market Book Market
value value value value
Cash $100,000 $100,000 $95,000 $95,000
Net
receivable 39,000 37,000 28,000 36,000
Inventory 60,000 75,000 55,000 66,000
Land 50,000 80,000 75,000 82,000
Buildings 80,000 70,000 90,000 90,000
Accumulated
amortization 25,000 ---- 30,000 ----
Accounts payable 18,000 18,000 25,000 25,000
Prepare the balance sheet for GL Partnership on January 1, 2020, immediately after the partnership entries are prepared.
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