Practice Activity 11.12 Capital contribution of partners in a partnership’s statement of financial p
- Adaeze Nwobu
- Apr 12, 2023
- 1 min read
Akanchawa, Biakenechukwu and Chigoziem decided to come together on 1January 2018 and form a partnership business known as Akanchawa, Biakenechukwu, Chigoziem & Co., distributing profits or losses in the proportion 5:3:2, respectively. Akanchawa contributed ₦500,000 as capital. Biakenechukwu and Chigoziem contributed ₦180,000 and ₦120,000 respectively. The business approached a friend of Akanchawa for a loan of ₦50,000. The loan attracts an interest rate of 8% annually and is to be repaid to Akanchawa’s friend in two years’ time.
Required: Prepare the opening statement of financial position for Akanchawa, Biakenechuwku, Chigoziem & Co. as at 1 January 2018.
A suggested solution to practice activity 11.12
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