Yuanne Sipp and Letitia Grimes share partnership income on a 3:2 basis. They have capital balances of $550,000 and $284,000, respectively, when Tammy Tuck is admitted to the partnership. Prepare the journal entry to record the admission of Tammy Tuck assuming Tuck invests $240,000 for a 25% ownership interest. (Credit
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.
Yuanne Sipp and Letitia Grimes share
Prepare the
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Account Titles and Explanation
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Debit
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Credit
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select an account title
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enter a debit amount
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enter a credit amount
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select an account title
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enter a debit amount
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enter a credit amount
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select an account title
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enter a debit amount
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enter a credit amount
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select an account title
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enter a debit amount
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enter a credit amount
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