A. Adding a Partner At February 15, 2023 the capital balances and the profit/loss ratios in the DDD partnership were as follows. Partners Donaldson, D. Drapier, S Dong, N. Capital Balance $ 125,000 100,000 75,000 $ 300,000 Profit/ Loss Patio 50% 40% 30% The next day, on February 16, 2023, S. Dharma is admitted to the partnership for 10% share capital by investment. After Dharma's admission, the total partnership capital is $340,000. Required: Answer the following questions. 1. How much was Dharma's cash investment in the partnership? 2. What was the total bonus allocated to the old partners? 3. What is the balance in each partner's capital account after Dharma's admission to the partnership?
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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