A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically: Henry (50%) $ 60,000 Thomas (30%) 70,000 Catherine (20%) 140,000 Anne is going to invest $51,000 into the business to acquire a 30 percent ownership interest. Goodwill is to be recorded. What will be Anne’s beginning capital balance? Multiple Choice $81,000 $115,714 $51,000 $96,300
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 partnership has the following capital balances with partners'
| Henry (50%) | $ | 60,000 |
| Thomas (30%) | 70,000 | |
| Catherine (20%) | 140,000 | |
Anne is going to invest $51,000 into the business to acquire a 30 percent ownership interest.
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$81,000
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$115,714
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$51,000
-
$96,300
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