Financial Position – Essaylink

Get your Assignment in a Minimum of 3 hours

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

Free Inquiry Order A Paper Now Cost Estimate

Billy and Erica are partners sharing profits and losses in the ratio of 3:2 respectively. Their Statement of financial position as at March 31, 2016 was as follows:
Billy and Erica

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Statement of Financial Position as at 31 March 2016

$ $
Non-current assets
Buildings 65 000
Furniture 15 000
Machinery 13 000
93 000
Inventory 30 000
Accounts receivable 19 000
Cash at bank 23 000
Cash in hand 3 000
75 000
Less; Current liabilities
Accounts payable 28 000
47 000
140 000
Financed by:
Billy 70 000
Erica 70 000
140 000
On that date, they admit Devon into the partnership for 1/3 share of the profits on the following terms:

Furniture and inventory are to decrease by 10%.
Building is appreciated by $20 000.
5% provision is to be created for doubtful debts.
Devon is to bring in $50 000 as his capital and $30 000 as goodwill.

the revaluation account (7 marks)
the partners’ capital account (10 marks)
the Statement of Financial Position of the new firm. (8 marks)

"Is this question part of your assignment? We Can Help!"

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"

Get Started