Joshua is admitted by purchase of interest. b. Joshua is admitted by purchase of interest from Herbert . c. Joshua is admitted by investment and Bonus Method is used. d. Joshua is admitted by investment and Goodwill Method / Revaluation Method is used. e. Joshua is admitted by investment and the adjusted capital after his admission is 90,000. Required: 1. Make a table Rows for Assumptions a and b must include Original Capital Interest Purchased and Adjusted Capital. Rows for Assumptions c d and e must include Original Capital Bonus (there is any)Goodwill (there is any) and Adjusted Capital 2. The journal entry upon the admission of Joshua. 3. Answer the following questions for each assumption: i. What will be the total capital of the partnership upon Joshua's admission? ii. What will be the new partnership sharing agreement? iii. What amount of capital will be credited to Joshua upon his admission?
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.
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