Partners Quinsay and Buenaventura have capital balances of P100,000 and P40,000 and share income in a ratio of 4:1, respectively. Rementina is to be admitted into the partnership with a 20% interest in the business. What is the journal entries and computations to record the admission of Rementina for each of the following independent situations: 1. Rementina invested P60,000. Total capital will be P200,000. 2. Rementina purchased the 20% interest by paying Quinsay P22,000 and Buenaventura P11,000. 3. Rementina invested P32,000. Total capital will be P172,000
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.
Admission by Investment of Assets
Partners Quinsay and Buenaventura have capital balances of P100,000 and P40,000 and share income in a ratio of 4:1, respectively. Rementina is to be admitted into the
What is the
1. Rementina invested P60,000. Total capital will be P200,000.
2. Rementina purchased the 20% interest by paying Quinsay P22,000 and
Buenaventura P11,000.
3. Rementina invested P32,000. Total capital will be P172,000.
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