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7 marksPartnership Formation and Capital Accounts

CSEC Principles of Accounts · January 2017 · Paper 2 · Question 1(a)

Chris and Vern formed a partnership on 1 March 2015 to make and deliver fresh salads. Chris contributed 80,000 cash and a motor vehicle valued at 20,000. Vern contributed 45,000 cash and 25,000 equipment.

Prepare the journal entry to record the formation of the partnership of Chris and Vern.

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Other parts of this question

  1. 1(b)Prepare the Profit and Loss Appropriation Account for the end of the first year for Chris and Vern.[9 marks]
  2. 1(c)Prepare the columnar Current Account of Chris and Vern as at 28 February 2016.[4 marks]

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