After the tangible assets have been adjusted to fair values, the capital accounts of Rey Refozar and Rogelio Ceradoy have balances of P75,000 and P125,000, respectively. Jiexel Manongsong is to be admitted to the partnership, contributing P50,000 cash to the partnership, for which he is to recieve an equity of P65,000. All partners share equally in profit. Required: 1. Prepare the journal entry to record the admission of Manongsong who is to recieve a bonus of P15,000. 2. Calculate the capital balances of each partners after the admission of the new partner.
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.
After the tangible assets have been adjusted to fair values, the capital accounts of Rey Refozar and Rogelio Ceradoy have balances of P75,000 and P125,000, respectively. Jiexel Manongsong is to be admitted to the
Required:
1. Prepare the
2. Calculate the capital balances of each partners after the admission of the new partner.
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