On March 31 of the current year, the capital accounts of the three existing partners and their shares of profits and losses are as follows: Capital Profit-and-Loss % Pike. . Quinn Reed.. $ 50,000 20% 100,000 30% 150,000 50% Pike, Quinn, and Reed are considering adding Shipp as a new partner on April 31 Shipp invests $200,000 in the partnership, acquiring a one-fourth interest in the business. Journalize the admission of Shipp as a partner on March 31
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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