The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (40%) Phil (30%) Ernie (30%) Sergio invests $60,000 30,000 45,000 $60,000 Sergio investment Required: Note: Use the cells A2 to C8 from the above information to complete this question. Prepare a schedule calculating the balance to be credited to each partner's account if Sergio invests $60,000 for a 20% interest. Assume the bonus method is used. Tiger 40% 30% 30% $8,400 20% Phil $6,300 Ernie $6,300 Sergio $39,000
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.
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