Hannah Johnson contributed equipment, inventory, and $52,200 cash to a partnership. The equipment had a book value of $28,100 and a market value of $32,900. The inventory had a book value of $55,200 but only had a market value of $10,400 due to obsolescence. The partnership also assumed a $12,200 note payable owed by Hannah that was originally used to purchase the equipment. What amount should be recorded to Hannah's capital account? Oa. $140,300 Ob. $107,700 Oc. $83,300 O d. $123,300
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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