Arif, Falel, and Bayu are forming The Doctor Partnership. Arif is transferring Rs30,000 of personal cash and equipment worth Rs25,000
Question:
Arif, Falel, and Bayu are forming The Doctor Partnership. Arif is transferring Rs30,000 of personal cash and equipment worth Rs25,000 to the partnership (amounts in thousands). Falel owns land worth Rs28,000 and a small building worth Rs75,000, which he transfers to the partnership. There is a long-term mortgage of Rs20,000 on the land and building, which the partnership assumes. Bayu transfers cash of Rs7,000, accounts receivable of Rs36,000, supplies worth Rs3,000, and equipment worth Rs27,000 to the partnership. The partnership expects to collect Rs32,000 of the accounts receivable.
Instructions
Prepare a classified statement of financial position for the partnership after the partners’ investments on December 31, 2020.
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... 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...
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Property Plant and Equipment Land Buildings Equipment Rs25 000 R 27 000 …View the full answer
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt