Ben and Emma are sole traders who run their own separate businesses providing accounting and bookkeeping services.

Question:

Ben and Emma are sole traders who run their own separate businesses providing accounting and bookkeeping services. On 31 December 312013, their individual balance sheets show the following accounts:

Starting in 2014, Ben and Emma have agreed to form a partnership trading as B & E Financial Services. The partnership agreement stipulates that all cash and other assets been transferred to the partnership. In addition, Ben and Emma will invest an additional $40 000 and $70 000 in cash respectively. Prepare a balance sheet for B & E Financial Services as at 1 January 2014.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...