Angel and Damon are partners with capital balances of 25,000 and 50,000, respectively. They share profits in the ratio of 4:6. Mark is to be admitted as a partner by making an investment. The agreed new capital after the admission of mark is to be 100,000. The new profit and loss sharing ratio is 3:4:3. REQUIRED: For each of the following independent cases below, make compound entries in journal form. d. Mark invests 25,000 for a 1/5 interest in the new capital. d. Mark invests 25,000 for a 30% interest in the new capital. e. Mark invests 20,000 for a 15% interest in the new capital. f. Mark invests 15,000 for a 30% interest in the new capital. g. Mark invests 20,000 for a 22% interest in the new capital.
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.
Angel and Damon are partners with capital balances of 25,000 and 50,000, respectively. They share profits in the ratio of 4:6. Mark is to be admitted as a partner by making an investment. The agreed new capital after the admission of mark is to be 100,000. The new
REQUIRED: For each of the following independent cases below, make compound entries in journal form.
d. Mark invests 25,000 for a 1/5 interest in the new capital.
d. Mark invests 25,000 for a 30% interest in the new capital.
e. Mark invests 20,000 for a 15% interest in the new capital.
f. Mark invests 15,000 for a 30% interest in the new capital.
g. Mark invests 20,000 for a 22% interest in the new capital.
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