Partnership Admission Wassem and Waqar are partners sharing profit and losses on their capital balances their capital are Rs. 120,000 and Rs. 80,000 respectively. On March 1st 2009 they agreed admit to Mr. Aqib as a new partner. Required: Give entries in general jounal to record the admission of Mr. Aqib under each of the following situations independently: Aqib invest Cash Rs. 50,000 for ¼ interest the total capital of the firm is to be increased only the amount of Aqib’s investment. Aqib invent Rs. 40,000 cash for ¼ interests. The older partner contain and remain unchanged their present capital balances Aqib invest sufficient cash for ½ interest in total capital Aqib purchased 1/3 of total ownership form Mr. Waseem in cash.
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.
Wassem and Waqar are partners sharing
Required: Give entries in general jounal to record the admission of Mr. Aqib under each of the following situations independently:
- Aqib invest Cash Rs. 50,000 for ¼ interest the total capital of the firm is to be increased only the amount of Aqib’s investment.
- Aqib invent Rs. 40,000 cash for ¼ interests. The older partner contain and remain unchanged their present capital balances
- Aqib invest sufficient cash for ½ interest in total capital
- Aqib purchased 1/3 of total ownership form Mr. Waseem in cash.
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