Gomez and Burgos are partners. Their capital balances on the date Zamora is admitted are as follows: Gomez, 30,000 and Burgos, 10,000. Zamora invests 40,000. His share in the profits is proportionate to his interest in the new firm. The old partners will share the balance using their original profit sharing ratio of 3:2. REQUIRED: a. GIve entry to record the admission of Zamora. b. Show the interest of each partner (expressed as a percentage) in the total capital before and after the admission of Zamora. c. What is the new profit and loss sharing ratio?
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.
4.7 Gomez and Burgos are partners. Their capital balances on the date Zamora is admitted are as follows: Gomez, 30,000 and Burgos, 10,000. Zamora invests 40,000. His share in the profits is proportionate to his interest in the new firm. The old partners will share the balance using their original profit sharing ratio of 3:2.
REQUIRED:
a. GIve entry to record the admission of Zamora.
b. Show the interest of each partner (expressed as a percentage) in the total capital before and after the admission of Zamora.
c. What is the new
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