Ibran, Alice and Lesley are in partnership sharing profits 6:3:1. Ibran has a combined capital and current account with a credit balance at 1 January 20x3 of £80,000. During the year to 31 December 20X3 the partnership made profits of 200.000. and Ibran drew out 20.000. On 31 December 20X3 Lesley retired. The partners value goodwill at 100.000 at that date, but do not wish this valuation to remain in the accounts. Ibran and Alice will continue in partnership, sharing profits equally. What is the credit balance on Ibran's capital and current account on 1 January 20X4? A. £190,000 B. £160,000 C. £178,000 D. E198,000
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.
Ibran, Alice and Lesley are in
A. £190,000 B. £160,000 C. £178,000 D. E198,000
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