MYRNA and NORMA are partners sharing profits and losses in the ratio of 60% and 40%, respectively. The partnership balance sheet at August 30, 2016 follows: Cash 27,000 Other assets 266,000 NORMA, Loan 20,000 Total 313,000 Accounts payable 30,000 MYRNA, Loan 13,000 MYRNA, capital 180,000 NORMA, capital 90,000 Total 313,000 At this date, OLGA was admitted as a partner for a consideration of 97,500 cash for a 40% interest in capital and in profits. 1. Assume OLGA is admitted by purchase of 40% each of the original partners interest, determine how the 97,500 will be apportioned to MYRNA and NORMA. 2. Assume OLGA is admitted by investing the 97,500 into the partnership, determine the effects of any bonus over the capital balances of the original partners:
MYRNA and NORMA are partners sharing profits and losses in the ratio of 60% and 40%, respectively. The partnership balance sheet at August 30, 2016 follows: Cash 27,000 Other assets 266,000 NORMA, Loan 20,000 Total 313,000 Accounts payable 30,000 MYRNA, Loan 13,000 MYRNA, capital 180,000 NORMA, capital 90,000 Total 313,000 At this date, OLGA was admitted as a partner for a consideration of 97,500 cash for a 40% interest in capital and in profits. 1. Assume OLGA is admitted by purchase of 40% each of the original partners interest, determine how the 97,500 will be apportioned to MYRNA and NORMA. 2. Assume OLGA is admitted by investing the 97,500 into the partnership, determine the effects of any bonus over the capital balances of the original partners:
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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MYRNA and NORMA are partners sharing profits and losses in the ratio of 60% and 40%, respectively. The partnership balance sheet at August 30, 2016 follows:
Cash 27,000
Other assets 266,000
NORMA, Loan 20,000
Total 313,000
Accounts payable 30,000
MYRNA, Loan 13,000
MYRNA, capital 180,000
NORMA, capital 90,000
Total 313,000
At this date, OLGA was admitted as a partner for a consideration of 97,500 cash for a 40% interest in capital and in profits.
1. Assume OLGA is admitted by purchase of 40% each of the original partners interest, determine how the 97,500 will be apportioned to MYRNA and NORMA.
2. Assume OLGA is admitted by investing the 97,500 into the partnership, determine the effects of any bonus over the capital balances of the original partners:
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