rtner by investing $52,400 cash. Josh is given a 22% interest in return for his investment. The amount of the bonus to the old partners is a. $52,400
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.
Samuel and Darci are partners. The
Bonus to old partners is when the new partners investment is not in equity with the total capital of the new parternship firm. The difference between the invesment value of the new partner and the share in total partnership is the bonus to the old partners
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