c free and g mann decide to merge their proprietorships c free and g mann decide to 4138618

February 13, 2021/in Business Homework Help Online /by Joseph

C Free and G Mann decide to merge their proprietorships

C. Free and G. Mann decide to merge their proprietorships into a partnership called Freemann Ltd. The statement of financial position for Mann shows:

Equipment………………………………………………£20,000

Less: Accumulated depreciation-equipment…………….8,000……………£12,000

Accounts receivable………………………………………16,000

Less: Allowance for doubtful accounts……………………1,200……………..14,800

The partners agree that the net realizable value of the receivables is £12,500 and that the fair value of the equipment is £10,000. Indicate how the four accounts should appear in the opening statement of financial position of the partnership.

C Free and G Mann decide to merge their proprietorships

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