Ragasa and Mendoza are partners sharing profits in the ratio of 3:2 respectively.On January 1, Ragasa and Mendoza decided to admit Gangoso as a new partner upon her investment of 8,000.On this date their interests in the partnership are as follows: Ragasa 11,500, Mendoza, 9,300. Assuming that the new partner is given 1/3 interest in the firm,with bonus being allowed to the new partner, the new capital balances of Ragasa, Mendoza and Gangoso respectively would be A. 10,540; 8,660 and 9,600 B. 11,500; 9,300 and 8,000 C. 11,520; 7,680 and 9,600 D. 12,480; 8,320 and 8,000
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.
Ragasa and Mendoza are partners sharing profits in the ratio of 3:2 respectively.On January 1,
Ragasa and Mendoza decided to admit Gangoso as a new partner upon her investment of 8,000.On
this date their interests in the partnership are as follows: Ragasa 11,500, Mendoza, 9,300. Assuming
that the new partner is given 1/3 interest in the firm,with bonus being allowed to the new partner, the
new capital balances of Ragasa, Mendoza and Gangoso respectively would be
A. 10,540; 8,660 and 9,600
B. 11,500; 9,300 and 8,000
C. 11,520; 7,680 and 9,600
D. 12,480; 8,320 and 8,000
Step by step
Solved in 3 steps with 1 images
