e-half of her equity. After the admission of Mitch, the total partners' equity in the records of the partnership will be
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.
![Nancy and Perry are partners, and each has a capital balance of P100,000. To gain admission to the partnership, Mitch pays P52,000 directly to Nancy
for one-half of her equity. After the admission of Mitch, the total partners' equity in the records of the partnership will be](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28e44eef-e50e-496a-b50e-876dada4744b%2Fe3db2c95-cfcf-4bc7-bc43-03563c5d76bc%2Fugc6hsr_processed.jpeg&w=3840&q=75)
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