Financial Accounting and Reporting Topic; Partnership Dissolution – Change in Ownership Anthony and Benjamin are partners who share their profits and losses equally. The capital balance of the partners are as follows: Anthony P 90,000 Benjamin 60,000 Charlie desires to join the firm and invests P 70,000 for one fourth interest In the capital and profits and losses of the firm. If this offer is accepted and a bonus is recorded, what should be the balances in their capital after admission?
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.
Topic;
Anthony and Benjamin are partners who share their
Anthony P 90,000
Benjamin 60,000
Charlie desires to join the firm and invests P 70,000 for one fourth interest In the capital and profits and losses of the firm. If this offer is accepted and a bonus is recorded, what should be the balances in their capital after admission?
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