Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $140,000, $80,000, and $55,000, respectively. (a) Your answer is correct. Assume Sanford joins the partnership by investing $135,000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
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.
![Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances
are $140,000, $80,000, and $55,000, respectively.
(a)
Your answer is correct.
Assume Sanford joins the partnership by investing $135,000 for a 25% interest with bonuses to the existing partners.
Prepare the journal entry to record his investment. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. List all debit entries before credit entries.)
Account Titles and Explanation
Cash
Sanford, Capital
Daggett, Capital
Lamppin, Capital
Pendergast, Capital
+
+
+
Debit
135000
Credit
102500
16250
9750
6500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09811c8b-4761-4e12-9e6b-d0b729e7e900%2Fe63bbbfe-0be0-4c3c-8e64-5c74c6dd2af2%2Faf5kauv_processed.jpeg&w=3840&q=75)
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