# The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a$60,000 investment. The partner’s new agreement will share profit and loss in a 1:3 ratio.

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

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FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 15, Problem 3EA
Textbook Problem
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## The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a$60,000 investment. The partner’s new agreement will share profit and loss in a 1:3 ratio.

To determine

Introduction:

Partnership refers to a form of business ownership where two or more than two persons join to run a business. They share capital, liability and profit & losses of business.

To prepare:

A schedule showing the division of bonus among old partners.

### Explanation of Solution

Calculation of bonus amount will be as follows:

 Particulars Amount ($) Total capital of old partners 90,000 Partner’s old ratio 50:50 Investment by new partner 60,000 Total capital of new partnership 150,000 New partner’s capital credit 50,000 Total bonus to old partner 10,000 Calculation of new partner’s capital credit: Ratio of old partners is 50:50. Investment by new partner is$60,000.

Newpartner'scapitalcredit=(13×$150,000)=$50,000

Calculation of bonus to old partners:

Totalbonustooldpartners=(Investmentbynewpartnernewpartner's

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