Ben and Jerry,two Sole Traders Form a Partnership by Combining

question 12

Multiple Choice

Ben and Jerry,two sole traders form a partnership by combining their net assets.
Jerry contributes:
Cost value Fair value
Cash $20 000
Accounts receivable $14 000 $12 500
Ben contributes:
Plant $30 000 $25 000
Accumulated depreciation $7 000
Bank overdraft $6 000
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 Ben and Jerry?

• A)Nil
• B)$1500
• C)$1000
• D)$500

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Definitions:

Place Theory

A theory in psychology and philosophy that suggests physical location and environment play a significant role in how individuals perceive and interact with the world around them.

Frequency Theory

A theory in the field of psychology that suggests the rate at which nerve impulses are fired in the auditory nerve corresponds to the frequency of a sound wave, enabling us to detect its pitch.

Volley Principle

A theory in auditory neuroscience suggesting that groups of neurons can provide a temporal coding for frequencies by firing in rapid succession, allowing the brain to perceive sounds up to about 5000 Hz.

Binaural Cues

Sounds that enable the brain to perceive direction and distance by comparing the input from both ears.