Prepare the valuation entries in the general journal $$and $$ partnership. You do not need to show any entries regarding the valuation of goodwill.

  

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Total assets EQUITY AND LIABILITIES Capital & Reserves Capital X Capital Y General Reserve Current liabilities Trade and other payables Total equity and liabilities 2. 3. 4. 5. 6. 240 000 200 000 127 500 67 500 5 000 40 000 240 000 Additional information: For the purpose of the change in ownership the following agreement was reached: 1. Provision would be made for credit losses at 10% of the outstanding (carrying) amount of the accounts receivable. Inventories would be valued at R90 000. Land and buildings would be valued at the market value of R115 000. Partner Z would bring R42 500 into the business in cash. Other tangible assets would be shown at the valued amounts. Partners X and Y would withdraw or pay in sums of money so that their net interest in the old partnership would be the same as the profit-sharing ratio. Source: Waka, L. 2023 Required Prepare the valuation entries in the general journal of X and Y partnership. You do not need to show any entries regarding the valuation of goodwill. Total assets EQUITY AND LIABILITIES Capital & Reserves Capital X Capital Y General Reserve Current liabilities Trade and other payables Total equity and liabilities 2. 3. 4. 5. 6. 240 000 200 000 127 500 67 500 5 000 40 000 240 000 Additional information: For the purpose of the change in ownership the following agreement was reached: 1. Provision would be made for credit losses at 10% of the outstanding (carrying) amount of the accounts receivable. Inventories would be valued at R90 000. Land and buildings would be valued at the market value of R115 000. Partner Z would bring R42 500 into the business in cash. Other tangible assets would be shown at the valued amounts. Partners X and Y would withdraw or pay in sums of money so that their net interest in the old partnership would be the same as the profit-sharing ratio. Source: Waka, L. 2023 Required Prepare the valuation entries in the general journal of X and Y partnership. You do not need to show any entries regarding the valuation of goodwill.

Answer rating: 100% (QA)

SOLUTION Based on the information provided here are the valuation entries that would be recorded in the general journal of X and Y Partnership 1 Provi... View the full answer