Q.5 Partnership Formation

Naeem, Amjad, and Khalid formed Partnership contributing equal

amounts of Capitals shown below:

Naeem:

Cash Rs. 150,000 and Building worth Rs. 750,000

Amjad:

Cash Rs. 500,000 and Merchandise Inventory for the balance.

Khalid:

Office Equipment worth Rs. 800,000 and the balance in Cash.

REQUIRED:

a. Present enteries in General Journal of the Firm.

b. Prepare Balance sheet in classified form on the formation of partnership firm.