Dev and Castle agree to form a partnership business to supply fresh fruits and vegetables to...

 

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Dev and Castle agree to form a partnership business to supply fresh fruits and vegetables to restaurants. The business will be known as D &C Fresh Veges. They agree on the following market values given to them by an independent valuer: • Dev's Contribution: Cash $17,500, Inventory of vegetables $54,800, furniture $18,500 and laptop computer $1600 • Castle's Contribution: Cash $51,000, Inventory of veges .$11,000 and account payable $2200 (15 marks total) Required: 1. Prepare the initial balance sheet for D&C fresh Veges. as at 1 Jan 2021, the day partnership commences. [10 marks] 2. Let's assume the partnership runs for 6 months and made a profit of $94,000 for the period ending in 30 June 2021 and retained this as cash in the business. Prepare a new balance sheet to incorporate this profit if no written partnership exists. [5 marks] Dev and Castle agree to form a partnership business to supply fresh fruits and vegetables to restaurants. The business will be known as D &C Fresh Veges. They agree on the following market values given to them by an independent valuer: • Dev's Contribution: Cash $17,500, Inventory of vegetables $54,800, furniture $18,500 and laptop computer $1600 • Castle's Contribution: Cash $51,000, Inventory of veges .$11,000 and account payable $2200 (15 marks total) Required: 1. Prepare the initial balance sheet for D&C fresh Veges. as at 1 Jan 2021, the day partnership commences. [10 marks] 2. Let's assume the partnership runs for 6 months and made a profit of $94,000 for the period ending in 30 June 2021 and retained this as cash in the business. Prepare a new balance sheet to incorporate this profit if no written partnership exists. [5 marks]

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