Raza and Mubashir are partners with capital of Rs. 50,000 and Rs. 30,000 respectively. They share profit and loss equally. They decide to admit Zubair as a partner for 1/6th interest in capital Required: record admission of Zubair under the following independent assumptions: i. Zubair invests sufficient cash for his interest. ii. Zubair invest Rs. 100,000 in the firm (use goodwill method) iii. Zubair invest Rs. 15,000 in the firm iv. Zubair invest Rs. 50,000 in the firm (use bonus method)
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.
4 Raza and Mubashir are partners with capital of Rs. 50,000 and Rs. 30,000
respectively. They share
partner for 1/6th interest in capital
Required: record admission of Zubair under the following independent assumptions:
i. Zubair invests sufficient cash for his interest.
ii. Zubair invest Rs. 100,000 in the firm (use
iii. Zubair invest Rs. 15,000 in the firm
iv. Zubair invest Rs. 50,000 in the firm (use bonus method)
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