The journal entry to record the transaction for this newly formed partnership is
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.
CH 12 Q1
1. D. Xavier contributed $15,000 in cash plus office furniture valued at $9,000 to the FX
- debit Cash, $15,000; debit Office Furniture, $9,000; credit D. Xavier, Capital, $24,000
- debit Cash, $15,000; debit Office Furniture, $9,000; credit FX Partnership, Capital, $24,000
- debit FX Partnership, $24,000; credit D. Xavier, Capital, $24,000
- debit D. Xavier, Capital, $24,000; credit FX Partnership, Capital, $24,000
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