Chapter 5
Partnerships
240
AP-7B (
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The following table shows the summary of amounts contributed by each partner to a new
partnership called Dev, Patel and Forbes on January 1, 2016.
Karthik Dev
Cash
$20,000
Accounts Receivable
5,000
Allowance for Doubtful Accounts
900
Note Payable
3,000
Harish Patel
Cash
$15,000
Bank Loan
6,000
Equipment
9,000
Accumulated Depreciation
1,000
John Forbes
Cash
$18,000
Building
100,000
Vehicle
15,000
Accumulated Depreciation
3,000
An independent appraiser determined the following values for some of the items. All other
items are listed at their fair market value.
• Allowance for doubtful accounts should be $1,500
• Equipment should be $10,000
• Vehicle should be $6,000
