Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 11 - No. 43)
What adjustments should be made to the financial statements before a partnership is formed?
Adjust for additional depreciation.
Write off obsolete inventory.
Record the liability of the partners.
Consider goodwill.
Explanation
Partners should agree upon all the adjustments to assets and liabilities such as the recording of additional depreciation, writing off of obsolete inventory, and consideration of goodwill to be the first step.
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