Tom and Jerry are two sole traders that have joined together to form a partnership by combining their net assets.
Jerry contributes:

What will be the amount shown in the allowance for doubtful debts account in the balance sheet prepared after the formation of the partnership of Tom and Jerry?
A) Nil
B) $500
C) $1000
D) $1500

Question

Tom and Jerry are two sole traders that have joined together to form a partnership by combining their net assets.
Jerry contributes:

What will be the amount shown in the allowance for doubtful debts account in the balance sheet prepared after the formation of the partnership of Tom and Jerry?
A) Nil 
B) $500 
C) $1000 
D) $1500

Quizplus · Accepted Answer

The Answer of Tom and Jerry are two sole traders that have joined together to form a partnership by combining their net assets.
Jerry contributes:

What will be the amount shown in the allowance for doubtful debts account in the balance sheet prepared after the formation of the partnership of Tom and Jerry?
A) Nil 
B) $500 
C) $1000 
D) $1500

Tom and Jerry Are Two Sole Traders That Have Joined