0 Accounts Payable 30,000 Myrna, Capital 193,000 Norma, Capital 70,000 At this date, Olga was admitted as a partner for consideration of P97,500 cash for a 40% interest in capital and in profits. Required: 1. Assume Olga is admitted by purchase of 40% each of the original partners' interest, determine the following: New partner's capital of Myrna, Nor
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Myra and Norma are partners sharing
Cash 27,000
Other Assets 266,000
Accounts Payable 30,000
Myrna, Capital 193,000
Norma, Capital 70,000
At this date, Olga was admitted as a partner for consideration of P97,500 cash for a 40% interest in capital and in profits.
Required:
1. Assume Olga is admitted by purchase of 40% each of the original partners' interest, determine the following:
- New partner's capital of Myrna, Norma and Olga
- New Total partner's equity
2. Assume Olga is admitted by investing the P97,500 into the partnership, determine the following using Bonus and Revaluation Method:
- New partner's capital of Myrna, Norma and Olga
- New Total partner's equity
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