Abdullah and Yasser wish to form a Y & Z partnership. Abdullah contributes Plant and...
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Abdullah and Yasser wish to form a Y & Z partnership. Abdullah contributes Plant and Machinery with a book value of $ 375,000 (current value of $400,000) and a factory building with a book value of $ 400,000 (current value of $ 600,000). Yasser will contribute cash. If the partners plan to share profits and losses on 3:2 ratio, after the formation of the partnership and assuming they have agreed to follow the same ratio as capital contributions, how much cash will Yasser have to contribute to form the partnership?
Pass Journal entry to be recorded in Y& Z partnership Firm
Pass Journal entry to record the capital transferred in to the bank account of the Y& Z partnership Firm
c.Pass Journal entry to record the transactions of both the partners, Abdullah has taken $ 250,000 to purchase a car for his personal use and Yasser has taken $ 150,000 for his personal expenditure from their capital account..
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