Homework Help is Here – Start Your Trial Now!
Business
Accounting
sharing earnings in the ratio 5:3:2 respectively. As of December 31, 2019, their capital balance showed 95,000, 80,000 and 60,000 for Mitz, Marc, and Mart, respectively. On January 1, 2020, the partnership admitted Vince as a new partner and according to the partnership agreement, Vince will contribute 80,000 cash and will also pay 100,000 for 15% of Marc’s share. Vince will share 20% in the earnings while

sharing earnings in the ratio 5:3:2 respectively. As of December 31, 2019, their capital balance showed 95,000, 80,000 and 60,000 for Mitz, Marc, and Mart, respectively. On January 1, 2020, the partnership admitted Vince as a new partner and according to the partnership agreement, Vince will contribute 80,000 cash and will also pay 100,000 for 15% of Marc’s share. Vince will share 20% in the earnings while

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Mitz, Marc and Mart are partners sharing earnings in the ratio 5:3:2 respectively. As of December 31, 2019, their capital balance showed 95,000, 80,000 and 60,000 for Mitz, Marc, and Mart, respectively.
On January 1, 2020, the partnership admitted Vince as a new partner and according to the partnership agreement, Vince will contribute 80,000 cash and will also pay 100,000 for 15% of Marc’s share. Vince will share 20% in the earnings while the ratio of the original partners will remain proportionately the same as before Vince’s admission. After Vince’s admission, the total capital of the partnership will be 330,000 while Vince’s capital account will be 70,000. Compute for the respective balance of the original partners’ capital account after the admission of Vince.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS