Practice Activity 11.16 Presenting the statement of financial position after the absorption of a par

Practice Activity 11.16 Presenting the statement of financial position after the absorption of a partnership has taken place

The facts are the same as Practice Activity 11.15 except that the balance in the bank account was taken over by Pam, Sam, Tam & Co.

Required:

i. Write up the accounts to close the accounting records of Prudence, Sparkle, Gold & Co.

ii. Prepare the relevant Journal and business acquisition account to reflect the absorption agreement in the books of Pam, Sam, Tam & Co.

iii.Prepare the statement of financial position as at 1 January 2018 immediately after the absorption.

See the suggested answer to practice activity 11.16 here.