As part of the initial investment, a partner contributes office equipment that originally cost N20,000 and on which provision for depreciation of N12,500 had been recorded. If the partners agree on a valuation of N9,000 for the equipment, what amount should be debited to the office equipment account?
Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business?
A.
they will simply continue since there are no new members
B.
the partnership is formally ended and new company books opened
C.
the shares and all other items will be shared equally and not in their former ratios
D.
computation of goodwill must be done as it is legally required
