Capital balances and profit-and-loss-sharing ratios for the partners in the BIG Entertainment Gallery are as follows: Ben Capital (50%) 700,000 Irv Capital (30%) 480,000 Geo Capital (20%) 300,000 Total 1,480,000 Ben needs money and agrees to assign half of his interest in the partnership to Pet for $180,000 cash. Pet pays $180,000 directly to Ben. 1) Prepare the journal entry to record the assignment of half of Ben’s interest in the partnership to Pet 2) What is the total capital of the BIG partnership immediately after the assignment of the interest to Pet?
Capital balances and profit-and-loss-sharing ratios for the partners in the BIG Entertainment Gallery are as follows: Ben Capital (50%) 700,000 Irv Capital (30%) 480,000 Geo Capital (20%) 300,000 Total 1,480,000 Ben needs money and agrees to assign half of his interest in the partnership to Pet for $180,000 cash. Pet pays $180,000 directly to Ben. 1) Prepare the journal entry to record the assignment of half of Ben’s interest in the partnership to Pet 2) What is the total capital of the BIG partnership immediately after the assignment of the interest to Pet?
Capital balances and profit-and-loss-sharing ratios for the partners in the BIG Entertainment Gallery are as follows: Ben Capital (50%) 700,000 Irv Capital (30%) 480,000 Geo Capital (20%) 300,000 Total 1,480,000 Ben needs money and agrees to assign half of his interest in the partnership to Pet for $180,000 cash. Pet pays $180,000 directly to Ben. 1) Prepare the journal entry to record the assignment of half of Ben’s interest in the partnership to Pet 2) What is the total capital of the BIG partnership immediately after the assignment of the interest to Pet?
Capital balances and profit-and-loss-sharing ratios for the partners in the BIG Entertainment Gallery are as follows:
Ben Capital (50%) 700,000
Irv Capital (30%) 480,000
Geo Capital (20%) 300,000
Total 1,480,000
Ben needs money and agrees to assign half of his interest in the partnership to Pet for $180,000 cash. Pet pays $180,000 directly to Ben.
1) Prepare the journal entry to record the assignment of half of Ben’s interest in the partnership to Pet
2) What is the total capital of the BIG partnership immediately after the assignment of the interest to Pet?
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.
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