Admission by Purchase with the computation of capital balances of the old partners after admission. Presented below is the condensed balance sheet of the partnership of Charry, Aireen and Queen who share in the profits and losses i the ratio of 6:3:1, respectively: Cash P185,000 Liabilities Other assets 415,000 Charry, Capital Aireen, Capital 122,400 Queen, Capital Total P600,000 Total P180,000 252,000 126,000 42,000 P600,000 The partners agreed to sell 20% of their capital and profit and loss interest to Joe for P90,000. The said payment is to be made directly to the partners. Immediately after Joe's admission, what is the capital balance of Aireen?
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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