Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Didi and Chomi are running a business , VaalPure Innovations, a company thay specialists in developing cutting edge water filtration systems for industrial use. vaalPure
Didi and Chomi are running a business VaalPure Innovations, a company thay specialists in developing cutting edge water filtration systems for industrial use. vaalPure Innovations operates in the environmental technology sector focusing on providing sustainable solutions to industries dealing with water scarcity and pollution. Didi and chomi are in a partnership and share profits and losses in a ratio of : respectively.
On July the following information was extracted front he accounting record of the partnership:
Capital Didi R
Capital Chomi R
Current account Didi Cr R
Current account Chomi Cr R
Didi and Chomi decided to admit Lebo from August Lebo will contribute R cash and a vehicle worth R to acquire a fifth of the net asset share of the partnership. Didi and Chomi agreed to relinquish of their share in profits or losses to Lebo in the ratio of : respectively. All other assets were revalued before admitting Lebo to the partnership and a valuation profit of R was correctly calculated.
Correct balance which represents the correct balance in the capital account of Chomi after the valuation of assets and prior to the admission of Lebo?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started