After the tangible assets have been adjusted to the current market prices, the capital accounts of Cecil Jacobs and Maria Esteban have balances of $61,000 and $59,000 respectively. Lee White is to be admitted to the partnership, contributing $45,000 cash to the partnership, for which she is to receive an ownership equity of $55,000. All partners share equally in income. Journalize the admission of white, who receive a bonus of $10,000. What are the capital balances of each partner after the admission pf the
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 the current market prices, the capital accounts of Cecil Jacobs and Maria Esteban have balances of $61,000 and $59,000 respectively. Lee White is to be admitted to the partnership, contributing $45,000 cash to the partnership, for which she is to receive an ownership equity of $55,000. All partners share equally in income.
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- Journalize the admission of white, who receive a bonus of $10,000.
- What are the capital balances of each partner after the admission pf the new partners
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