1.Tom, Greg, and Tim are partners who share profits 50%, 25%, and 25%. Their capital balances were $117,000, $78,000, and $45,000, respectively, before Tim's retirement. Tom and Greg each paid Tim $30,000 from their personal assets to buy half his interest. After Tim has withdrawn, Tom will have a capital balance of $____________. 2.Sarah, Lila, and June are partners who share profits 40%, 20%, and 40%. Their capital balances were $280,000, $120,000, and $80,000, respectively, before June’s retirement. June was paid $56,000 from partnership assets to buy her interest. After June has withdrawn, Sarah will have a capital balance of $____________. 3.Rob and Chrissie are partners who share profits 60% and 40%. Their capital balances were both $60,000 before Dora was admitted to the partnership. Dora contributed $100,000 in cash to the partnership for a 30% interest. After Dora is admitted to the partnership, Rob will have a capital balance of $____________. 4.Lacy and Jenny are partners who share profits 60% and 40%. Their capital balances were both $270,000 before Diane was admitted to the partnership. Diane paid $150,000 each to Lacy and Jenny for purchase of a 25% interest in the partnership. After her admission to the partnership, Diane will have a capital balance of $____________. 5.Jerry and Mike are partners who share profits 40% and 60%. Before Jasper was admitted to the partnership, Jerry's and Mike's capital balances were $680,000 and $480,000, respectively. Jasper contributed $760,000 in cash to the partnership for a one-half interest. After Jasper is admitted to the partnership, Mike will have a capital balance of $____________. 6.Marv, Andrew, and Russ are partners who share profits 30%, 30%, and 40%. Their capital balances were $630,000, $420,000, and $210,000, respectively, before Russ' retirement. Russ was paid $330,000 from partnership assets to buy his interest. After Russ has withdrawn, Marv will have a capital balance of $____________.
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.
1.Tom, Greg, and Tim are partners who share profits 50%, 25%, and 25%. Their capital balances were $117,000, $78,000, and $45,000, respectively, before Tim's retirement. Tom and Greg each paid Tim $30,000 from their personal assets to buy half his interest. After Tim has withdrawn,
Tom will have a capital balance of $____________.
2.Sarah, Lila, and June are partners who share profits 40%, 20%, and 40%. Their capital balances were $280,000, $120,000, and $80,000, respectively, before June’s retirement. June was paid $56,000 from partnership assets to buy her interest. After June has withdrawn,
Sarah will have a capital balance of $____________.
3.Rob and Chrissie are partners who share profits 60% and 40%. Their capital balances were both $60,000 before Dora was admitted to the partnership. Dora contributed $100,000 in cash to the partnership for a 30% interest. After Dora is admitted to the partnership,
Rob will have a capital balance of $____________.
4.Lacy and Jenny are partners who share profits 60% and 40%. Their capital balances were both $270,000 before Diane was admitted to the partnership. Diane paid $150,000 each to Lacy and Jenny for purchase of a 25% interest in the partnership. After her admission to the partnership,
Diane will have a capital balance of $____________.
5.Jerry and Mike are partners who share profits 40% and 60%. Before Jasper was admitted to the partnership, Jerry's and Mike's capital balances were $680,000 and $480,000, respectively. Jasper contributed $760,000 in cash to the partnership for a one-half interest. After Jasper is admitted to the partnership,
Mike will have a capital balance of $____________.
6.Marv, Andrew, and Russ are partners who share profits 30%, 30%, and 40%. Their capital balances were $630,000, $420,000, and $210,000, respectively, before Russ' retirement. Russ was paid $330,000 from partnership assets to buy his interest. After Russ has withdrawn,
Marv will have a capital balance of $____________.
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