Groh and Jackson are partners. Groh's capital balance in the partnership is 60,000, and Jackson's capital balance is 57,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with 20% interest. Block will invest 35,800 in the partnership. The bonus that is granted to Groh and Jackson equals: A. 1,836 each B. 3,580 each C. 2,620 each D. 1,836 to Groh; 1,790 to Jackson E. $0
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.
Groh and Jackson are partners. Groh's capital balance in the partnership is 60,000, and Jackson's capital balance is 57,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with 20% interest. Block will invest 35,800 in the partnership. The bonus that is granted to Groh and Jackson equals:
A. 1,836 each B. 3,580 each C. 2,620 each D. 1,836 to Groh; 1,790 to Jackson E. $0
Step by step
Solved in 3 steps
