Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of P60,000 and P30,000 respectively. With the consent of Bailey, Sandra buys one half of Abby's interest for P35,000. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership?
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.
Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of P60,000 and P30,000 respectively. With the consent of Bailey, Sandra buys one half of Abby's interest for P35,000. For what amount will Abby's capital account be debited to record admission of Sandra to the
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