Prepare the journal entry to record the admission of Mawani into the partnership. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditMar. 1(To record admission of partner.) Sandhill Accountants is a partnership with three partners. On February 28, 2021, the three partners, M. Kumar, H. Deol, and A.Kassam, have capital balances of $ 81,600, $ 65,500, and $ 44,700, respectively. The profit and loss ratio is 4:3:1. On March 1, 2021,Deol withdraws from the partnership and the remaining partners agree to pay him $79,800 cash from the partnership assets.After Deol leaves, Kumar and Kassam agree to a 4:2 profit ratio. During the year ended February 28, 2022, the partnership earns aprofit of $ 22,800. Neither Kumar nor Kassam makes any withdrawals because the partnership is short of cash after paying Deol. OnMarch 1, 2022, Kumar and Kassam agree to admit C. Mawani to the partnership with a 45% interest for $ 76.260 cash. After Mawaniis admitted, the new profit ratio will be 4:2:5 for Kumar, Kassam, and Mawani, respectively.

Working Note: 1. Payment to H.deol = $79,800 Balance debited to existing partners = ($79,800 -…

Answered: Sandhill Accountants is a partnership…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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