Djokovic, Federer and Nadal were partners of a firm having their interest 3:2:5 respectively. Their capitals are $ 100,000, $80,000 and $150,000 respectively. They agreed to admit Murray as a new partner Required: Give the necessary journal entries and prepare balance sheet in each of the following cases separately: Murray agreed to bring sufficient cash for 1/4th share of new If he contributed sufficient assets for 1/2th share of the new partnership, (brings machinery of $. 95,000 balance in cash) If he contributed certain assets in the shape of Office Equipment, Furniture merchandise at an agreed cost of each $ 18,000, $30,000 and $32,000 respectively, and the balance in cash for 1/3rd interest of the new partnership total Murray invests $ 200,000 cash and receiving a 1/4th interest, his capital is to be credited of the entire amount of his investment
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.
Djokovic, Federer and Nadal were partners of a firm having their interest 3:2:5 respectively. Their capitals are $ 100,000, $80,000 and $150,000 respectively. They agreed to admit Murray as a new partner
Required:
Give the necessary
- Murray agreed to bring sufficient cash for 1/4th share of new
- If he contributed sufficient assets for 1/2th share of the new partnership, (brings machinery of
$. 95,000 balance in cash)
- If he contributed certain assets in the shape of Office Equipment, Furniture merchandise at an agreed cost of each $ 18,000, $30,000 and $32,000 respectively, and the balance in cash for 1/3rd interest of the new partnership total
- Murray invests $ 200,000 cash and receiving a 1/4th interest, his capital is to be credited of the entire amount of his investment
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