On March 1, 2020, EE and FF decided to combine their business and form a partnership. Their balance sheets onMarch 1 before adjustments showed the following: 1. Compute the net (debit)/credit adjustment for EE anf FF. EE FF EE FF A. 28,700 ; 28,200 C. (8,700) ; 1,800 B. (28,700) ; (28,200) D. 8,700 ; (1,800) 2. Compute the total assets after the formation. A. 1,607,650 C. 1,579,850 B. 1,570,850 D. 1,568,750 3. If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship, what is the capital of FF after the formation? A. 400,000 C. 369,740 B. 391,700 D. 391,700 4. If If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship with EE’s capital to be used as a basis, what is the capital of FF after the formation? A. 400,000 C. 369,740 B. 391,700
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.
On March 1, 2020, EE and FF decided to combine their business and form a partnership. Their balance sheets onMarch 1 before adjustments showed the following:
1. Compute the net (debit)/credit adjustment for EE anf FF.
EE FF EE FF
A. 28,700 ; 28,200 C. (8,700) ; 1,800
B. (28,700) ; (28,200) D. 8,700 ; (1,800)
2. Compute the total assets after the formation.
A. 1,607,650 C. 1,579,850
B. 1,570,850 D. 1,568,750
3. If the partners are to share
A. 400,000 C. 369,740
B. 391,700 D. 391,700
4. If If the partners are to share profits and losses in the ratio of 6:4 and their capital is top reflect this relationship with EE’s capital to be used as a basis, what is the capital of FF after the formation?
A. 400,000 C. 369,740
B. 391,700 D. 391,700
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