On January 31, 2020, partners Yu, Sting and Ky had the following loan and capital account balances (after closing entries for the month) Loan receivable from Yu 40,000 dr Yu, Capital 60,000 dr Loan payable to Ky 120,000 cr Sting, Capital 240,000 cr Ky, Capital 140,000 cr The partnership’s income sharing ratio was 50:20:30 to Yu, Sting and Ky, respectively. On January 31, 2020, One was admitted to the partnership for a 20% interest in total capital of the partnership in exchange for an investment of $80,000 cash. Prior to One’s admission, the existing partners agreed to increase the carrying amount of the partnership’s inventories to current its fair value by $120,000. How much is the capital account to be credited to Sting upon his admission?
On January 31, 2020, partners Yu, Sting and Ky had the following loan and capital account balances (after closing entries for the month)
Loan receivable from Yu 40,000 dr Yu, Capital 60,000 dr
Loan payable to Ky 120,000 cr Sting, Capital 240,000 cr
Ky, Capital 140,000 cr
The
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