Partnership formation of Mr. Dabloo, & Mr.Babloo
Mr. Dabloo works as a civil engineer in a reputed firm. He is quiting his job to start his own business of supplying mineral water to various households with Mr. Babloo who is already engaged in this business. They have agreed to share profits in 90:10 respectively. Following are details of their investment in the business.
Mr. Dabloo RUPEES
CASH IN HAND 5,000CASH AT BANK 100,000
Filtration plant 70,000
Office SUPPLIES 50,000
Delivery van 500,000
Mr. Babloo
CASH AT BANK 20,000
FURNITURE 25,000
Filtration licence 60,000
Filtration chemicals 10,000
Filtration chemicals 10,000
REQUIRED: Prepare journal entries in the books of new partnership firm.
Answer: Will be updated shortly.
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