CAPE Accounting Unit 1 · 2021 · Paper 2 · Question 2(c)
List FOUR additional terms, other than those mentioned in the case, which may be found in the formal partnership agreement.
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- 2(a)(i)State TWO main characteristics of a Partnership that may be appropriate for Joe's new business.[2 marks]
- 2(a)(ii)State TWO main characteristics of a Private company that may be appropriate for Joe's new business.[2 marks]
- 2(a)(iii)State TWO main characteristics of a Public company that may be appropriate for Joe's new business.[2 marks]
- 2(b)Prepare the journal entry to record the formation of the partnership.[5 marks]
- 2(d)(i)Prepare the entries to record the incorporation, assuming that the new company issues all 30,000 of the ordinary shares.[11 marks]
- 2(d)(ii)Prepare the opening balance sheet of the new company, Advanced Marketing Inc., as at 1 January 2021.[9 marks]
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