A partnership has the following capital balances: Henry (50% of gains and losses) . . . . . . . . . . . . $ 135,000Thomas (30%) . . . . . . . . . . . .. . 85,000Catherine (20%) . . . . . . . . . . . . 80,000 Anne is going to invest $125,000 into the business to acquire a 40 percent ownership interest. Goodwill is to be recorded. What will be Anne’s beginning capital balance? Choose the correct. a. $125,000b. $170,000c. $200,000d. $245,000
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.
A
Henry (50% of gains and losses) . . . . . . . . . . . . $ 135,000
Thomas (30%) . . . . . . . . . . . .. . 85,000
Catherine (20%) . . . . . . . . . . . . 80,000
Anne is going to invest $125,000 into the business to acquire a 40 percent ownership interest.
a. $125,000
b. $170,000
c. $200,000
d. $245,000
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