X and Y agreed form a partnership. X is to contribute cash of 135,000 and Y is to contribute his equipment with book value of 200,000. It was agreed that the contribution of Y shall be recorded at an amount equal to 55% claim in the partnership. The total assets of the partnership upon formation
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.
X and Y agreed form a
is
A. 335,000
B. 300,000
C. 245,000
D. 135,000
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