partnership Formation Exercise three 2015
Saturday, October 31, 2015
Shamim collegiate
LA 54 block 15 gulshan e Mustafa
2st year commerce group Weekly test
Q1)Jan 1,2014 Abdul Rehman And Abdul Aziz form a partnership by merging business. On this date their balance sheet items were as under :-
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Abdul Rehman
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Abdul Aziz
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Cash
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13,000
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8,000
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Account receivable
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20,000
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15,000
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Merchandise inventory
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21,000
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26,000
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Furniture
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20,000
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10,000
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Allowance for depreciation
-Furniture
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5000
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1000
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Allowance for bad debt
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1000
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500
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Account Payable
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8,000
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20,000
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Abdul rehman Account receivable be valued at 18,000.Firmiture be valued at 12,000 Merchandise inventory be valued 22,000 and one half of the account payable be accepted
Abdul aziz Account receivable be valued at 14,000.Firmiture be valued at 5,000 Merchandise inventory be valued 20,000 and three-fourth of the account payable be accepted
It was also decided that abdul aziz will invest sufficient cash to give him equal interest with Abdul rehman
2.Sana , Maha and Iqra form a partnership under the name of M/S SMA
(i) Sana
(ii) Maha contribute cash 40,000 and hand over Office Equipment. The book value of which 30,000. they agreed to the value of Office Equipment to be 35,000
(iii) Iqra Contributed 50,000 and Supplies the book value 20,000. they agreed to the value of Supplies 25,000
Required
Give entries In General Journal of the new firm to record capital contributions by the partners and balance sheet
Ø Q3)the following balance sheet
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Fahad
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Raheel
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Cash
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120,000
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180,000
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Account receivable
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280,000
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300,000
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Merchandise inventory
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90,000
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150,000
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Office furniture
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200,000
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220,000
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Total assets
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690,000
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850,000
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Account payable
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90,000
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120,000
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Capital
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600,000
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730,000
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Total equities
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690,000
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850,000
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All assets and liabilities were taken over under name of Friend and Co Under the following agreed valued
Fahad
ü Account receivable be realized rs 240,000
ü Merchandise inventory be valued at rs 90,000
ü Office furniture valued at 150,000
Raheel
ü Account receivable be realized rs 250,000
ü Merchandise inventory be valued at rs 135,000
ü Office furniture valued at 200,000
ü Account payable is to be accepted
They further decided that they make capital of rs 550,000 and 650,000
Required
General journal and balance sheet
Ø Waleed son of rizwan were doing indepent bussiness from the years their financial position on january 01 2014 was as under
Waleed cash rs 70,000 account receivable rs 200,000 merchandise inventory rs 180,000 land rs 200,000 Office equipment rs 250,000 , allowance for bad debts rs 40,000 Allowance for depreciation –equipment rs 35,000 account payable 125,000
Rizwan cash rs 80,000 account receivable rs 260,000 merchandise inventory rs 120,000 land rs 150,000 Office equipment rs 180,000 allowance for bad debts rs 90,000 Allowance for depreciation –equipment rs 40,000 account payable 60,000
Father and son decided to form a partnership under the title name Rizwan & Sons All assets and liabilities were turned over under the following agreed valued
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Waleed
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Rizwan
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Account receivable
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130,000
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180,000
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Merchandise inventory
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160,000
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100,000
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Land
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250,000
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180,000
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Office equipment
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200,000
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150,000
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Account payable
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2/5
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1/3
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Required General journal and balance sheet