lyiah
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#1
Report Thread starter 3 years ago
#1
Goodwill was valued at $48 000 on 1 July 2005. Although a goodwill account is not to be opened in the partnership books appropriate adjustments are to be made for his asset.

On 31 march 2007 the partner sold tge business to Parkway Mansgement consultant ltd for $180 000. The sale involved all the net assets of the partners except the balance at the bank. The purchase price was settled by the immediate issue by Parkway Management consultant ltd of 100000 ordinary shares of $1 each fullt paid and $40 000 cash distributed to the partners in their profit and loss sharing ratio.

The partnership was dissolved on 1 julyy 2006. The shares in Parkway management consultant ltd were divided between the partners in their profit and loss sharing ratio. The partner paid into or withdraw from the bank such amounts as to settle the capital.

i) In addition to capital a current account is to be kept for each partner

i) River Lane is to be credited with a salary of $ 32 000 per annum.

ii) partners are to be credited with an interesr on capital account balances at a rate 10%

iii) on July 2005 the partners to pay into the partnership bank account the following amounts for the credit of their Capital Account

River lane $80 000
Sea show $40 000

Iv) the Balances of the profit or loss is to be shared between the partners 3:2

The partners Trial balance as at 30 June 2006 included the following balance in
addition to the partners capital account balances

Net profit for year ended 30 june
Drawing- River lane 24 000
Sra show 12000
Net assets other than bank 114 000
Balance at bank 54 000


Whilst the partnership took over the existing business of River Lane none of that
business tangible assets or liabilities were transferred to the partnership.However o
account is not tDrawing - River LaneBalance at bankNet profit for year ended 30 juneSea Show
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lyiah
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#2
Report Thread starter 3 years ago
#2
Someone help please please
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DJKL
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#3
Report 3 years ago
#3
There is no question, the information and dates are incoherent.
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