A, B, and C are partners with capital balances of 784,000, 2,730,000, and 1,190,000, respectively, sharing profits and losses in the ratio of 3:2:1. D is admitted as a new partner bringing with him expertise and is to invest cash for a 25% interest in the partnership which includes a credit of 735,000 for bonus upon his admission. How much cash should D contribute? 2,100,000 588,000 1,575,000 1,323,000
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.
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