Question 1 Partnership Formation On 1st July 2024 Eva and Fred form a partnership agreeing to value their capital contributions as $200 000. Eva' capital contribution: Motor vehicle $35 000 Premises $100,000 As Payable $10,000 Inventory $75.000 Fred's capital contribution: Cash $55,000 Equipment $85,000 Debtors $22,000 It was agreed to value a Debtors of Fred at $20,000 Required: a. Complete the general journal entries to record the formation of the Eva and Fred partnership on 1st July 2024 b. Prepare a Balance sheet of the partnership of Eva and Fred at 1st July 2024 a. General Journal Eva and Fred Date Particulars Debit Credit
Question 1 Partnership Formation On 1st July 2024 Eva and Fred form a partnership agreeing to value their capital contributions as $200 000. Eva' capital contribution: Motor vehicle $35 000 Premises $100,000 As Payable $10,000 Inventory $75.000 Fred's capital contribution: Cash $55,000 Equipment $85,000 Debtors $22,000 It was agreed to value a Debtors of Fred at $20,000 Required: a. Complete the general journal entries to record the formation of the Eva and Fred partnership on 1st July 2024 b. Prepare a Balance sheet of the partnership of Eva and Fred at 1st July 2024 a. General Journal Eva and Fred Date Particulars Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Question 1 Partnership Formation
On 1st July 2024 Eva and Fred form a partnership agreeing to value their
capital contributions as $200 000.
Eva' capital contribution:
Motor vehicle $35 000
Premises $100,000
As Payable $10,000
Inventory $75.000
Fred's capital contribution:
Cash
$55,000
Equipment
$85,000
Debtors
$22,000
It was agreed to value a Debtors of Fred at $20,000
Required:
a.
Complete the general journal entries to record the formation of the Eva
and Fred partnership on 1st July 2024
b. Prepare a Balance sheet of the partnership of Eva and Fred at 1st July
2024
a. General Journal Eva and Fred
Date
Particulars
Debit
Credit
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