lcantara, Budoy, and Dinoy have equities in a partnership of 600,000, 900,000, and 500,000, respectively, and share profits and losses in a ratio of 2:1:2, respectively. The partners have agreed to admit Ledda to the partnership. Required: Prepare the journal entries to record the admission of Ledda to the partnership under each of the following: 1. Ledda invested 500,000 for 30%, and bonus is recorded for Ledda. 2. Ledda invested 750,00 for a one-fifth interest, and bonus is recorded for the old.
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.
lcantara, Budoy, and Dinoy have equities in a partnership of 600,000, 900,000, and 500,000, respectively, and share
Required: Prepare the
1. Ledda invested 500,000 for 30%, and bonus is recorded for Ledda.
2. Ledda invested 750,00 for a one-fifth interest, and bonus is recorded for the old.
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