Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet. Accounts payable . $ 5,000 Accounts receivable . $10,000 Cash . 40,000 Gomez, Capital . 15,000 Land . 25,000 Long-term notes payable . 20,000 Pearson, Capital . 30,000 Litt, Capital . 5,000
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.
Selected accounts from the Pearson, Gomez, and Litt
December 31 follow. Prepare a classified balance sheet.
Accounts payable . $ 5,000 Accounts receivable . $10,000
Cash . 40,000 Gomez, Capital . 15,000
Land . 25,000 Long-term notes payable . 20,000
Pearson, Capital . 30,000 Litt, Capital . 5,000
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