Bobbi and Stuart are partners. The partnership capital of Bobbi is $40,800 and that of Stuart is $77,700. Bobbi sells his interest in the partnership to John for $58,100. The journal entry for the admission of John as a new partner would include a credit to a.John's capital account for $40,800 and a credit to Stuart's capital account for $77,700 b.Stuart's capital account for $59,250 c.John's capital account for $40,800 d.John's capital account for $58,100
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.
Bobbi and Stuart are partners. The
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