Question
D. Hassan and P. Ahmad combine their proprietorships to start a partnership named D.P. Software. Hassan and Ahmad have the following assets prior to the
- D. Hassan and P. Ahmad combine their proprietorships to start a partnership named D.P. Software. Hassan and Ahmad have the following assets prior to the formation of the partnership.
|
| Book Value | Fair Value | ||
|
| D. Hassan | P. Ahmad | D. Hassan | P. Ahmad |
| cash | $80,000.0 | $90,000.0 | $80,000.0 | $90,000.0 |
| equipment | $50,000.0 |
| $35,000.0 |
|
| Accumulated depreciation- equipment | ($15,000.0) |
|
|
|
| Accounts Receivables |
| $40,000.0 |
| $40,000.0 |
| Allowance for doubtful accounts |
| ($5,500.0) |
| ($10,000.0) |
|
| $130,000.0 | $124,500.0 | $115,000.0 | $120,000.0 |
Prepare the entry to record the investment of D. Hassan (2 marks)
Prepare the entry to record the investment of P. Ahmad (2 marks)
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso
6th Canadian Edition
1119731828, 9781119731825
