Sharif and Huda were partners sharing profit and loss in the ratio of 3:2. They decided to admit Fatima into the partnership and revalue their assets and liabilities as indicated here under: • To bring into record investment of RO 18,000 which had not so far been recorded in the books of the firm . • To depreciate stock, furniture and machinery by RO 18,000, RO 6,000 and RO 30,000 respectively. • To provide for workmen's compensation of RO 24,000. • Required: show the journal entries and revaluation account
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.
Step by step
Solved in 3 steps
