Ms. La is admitted as a new partner in ABC Company. Before she is admitted, Lea, Lou and Leny have capital balances of 60000 each. Upon admission, Ms. La has capital balance of 50000 and the total partnership is 200000. What is the initial capital balance of Lea in the new 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.
Ms. La is admitted as a new partner in ABC Company. Before she is admitted, Lea, Lou and Leny have capital balances of 60000 each. Upon admission, Ms. La has capital balance of 50000 and the total
Step by step
Solved in 2 steps
