pril 30, partner’s capital balances in YBG company are as follows: Youngee Tk.30,000, Beyer Tk.16,000 and Ciger Tk.10,000.The income sharing ratios are 5:3:2 respectively. On May 1, the YBGE Company is formed by admitting Edelman as a partner. Beyer’s capital balance is TK.25,000 after admitting Edelman to the partnership by investment. If Beyer’s ownership interest is 25% of total partnership capital, what were (1) Edelman’s cash investment and 2) the total bonus to the old partner
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.
At April 30, partner’s capital balances in YBG company are as follows: Youngee Tk.30,000, Beyer Tk.16,000 and Ciger Tk.10,000.The income sharing ratios are 5:3:2 respectively. On May 1, the YBGE Company is formed by admitting Edelman as a partner.
Beyer’s capital balance is TK.25,000 after admitting Edelman to the
If Beyer’s ownership interest is 25% of total partnership capital, what were
(1) Edelman’s cash investment and
2) the total bonus to the old partners.
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