C. Free and G. Mann decide to merge their proprietorships into a partnership called Freemann Ltd. The statement of financial position for Mann shows:
Equipment......................................................£20,000
Less: Accumulated depreciation-equipment................8,000...............£12,000
Accounts receivable.............................................16,000
Less: Allowance for doubtful accounts........................1,200.................14,800
The partners agree that the net realizable value of the receivables is £12,500 and that the fair value of the equipment is £10,000. Indicate how the four accounts should appear in the opening statement of financial position of the partnership.