At April 30, partnership capital of Arjay, Riane, Ariane are: Arjay P 52,000 Riane, P 48,000 Ariane P 18,000. The income sharing ratios are 5:4:1, respectively. On May 1, They admitted Jeph to the firm as a partner. Instructions a. Journalize the admission of Jeph under each of the following independent assumptions. Jeph purchased 50% of Ariane ownership interest by paying him P 16,000 in cash. Jeph purchase 33 1/3% of Riane’s ownership interest by paying him P 15,000 in cash Jeph invests P 62,000 for a 30% ownership interest, and bonuses are given to the old partners.
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.
At April 30,
Arjay P 52,000
Riane, P 48,000
Ariane P 18,000.
The income sharing ratios are 5:4:1, respectively. On May 1, They admitted Jeph to the firm as a partner.
Instructions a. Journalize the admission of Jeph under each of the following independent assumptions.
- Jeph purchased 50% of Ariane ownership interest by paying him P 16,000 in cash.
- Jeph purchase 33 1/3% of Riane’s ownership interest by paying him P 15,000 in cash
- Jeph invests P 62,000 for a 30% ownership interest, and bonuses are given to the old partners.
- Jeph invested P 42,000 for a 30% ownership interest, which includes a bonus to the new partner.
- Riane’s capital balance is P 32,000 after admitting Jeph to the partnership by investment. IF Riane’s ownership interest is 20% of total partnership capital, what were (1) Jeph cash investment and (2) the bonus to the new partner?
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