1 A, B, and C are partners in MBN firm, the income is divided in the ratio 4:3:2 respectively. Their capital balances are as follows: A, OMR 335000 B, OMR 244000 C, OMR 131000 -Assume D is to be admitted into the partnership on investing cash of OMR 262000 for (one third) of capital. -Assume that B will retire after one year from the partnership and that he will be paid OMR 182000.The partnership agreed to divide income after admission of D in the ratio of 1:2:2:3 Required (a). Prepare alternative journal entries to record the admission of D. (b). Prepare alternative journal entries to record B’s retirement.
1 A, B, and C are partners in MBN firm, the income is divided in the ratio 4:3:2 respectively. Their capital balances are as follows: A, OMR 335000 B, OMR 244000 C, OMR 131000 -Assume D is to be admitted into the partnership on investing cash of OMR 262000 for (one third) of capital. -Assume that B will retire after one year from the partnership and that he will be paid OMR 182000.The partnership agreed to divide income after admission of D in the ratio of 1:2:2:3 Required (a). Prepare alternative journal entries to record the admission of D. (b). Prepare alternative journal entries to record B’s retirement.
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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1
A, B, and C are partners in MBN firm, the income is divided in the ratio 4:3:2 respectively.
Their capital balances are as follows:
A, OMR 335000
B, OMR 244000
C, OMR 131000
-Assume D is to be admitted into the
-Assume that B will retire after one year from the partnership and that he will be paid OMR 182000.The partnership agreed to divide income after admission of D in the ratio of 1:2:2:3
Required
(a). Prepare alternative
(b). Prepare alternative journal entries to record B’s retirement.
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