Admission of P means the new partner enters in to partnership firm sharing the profits or losses with the old partners in some agreed ratio. On admission of partner, the amount of equity shall be brought by him and the treatment need to be made for the amount brought. Requirement1: TheJournal entries required at purchase of share from the retiring partner.

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Answer 1

Question

Chapter 12, Problem P12.34BPGB

To determine

Admission of P means the new partner enters in to partnership firm sharing the profits or losses with the old partners in some agreed ratio. On admission of partner, the amount of equity shall be brought by him and the treatment need to be made for the amount brought.

Requirement1:

TheJournal entries required at purchase of share from the retiring partner.

To determine

Requirement 2:

The Journal entry for amount contributing equal to share of profits by new partner.Solution: The Journal entry for contributing the amount by new partner is as follows:

Accounts Title and explanations Debit $ Credit $

Cash Account Dr. 81,000

Thompson Capital Account 81,000

(for contributing the amount on admission)

To determine

Requirement 3:

The Journal entry for the amount contributed by new partner in excess of his share of profits.

To determine

Requirement 4:

The Journal entry for amount contributed by new partner lower than the amount as per income sharing ratio.

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Answer 2

Question

Chapter 12, Problem P12.34BPGB

To determine

Admission of P means the new partner enters in to partnership firm sharing the profits or losses with the old partners in some agreed ratio. On admission of partner, the amount of equity shall be brought by him and the treatment need to be made for the amount brought.

Requirement1:

TheJournal entries required at purchase of share from the retiring partner.

To determine

Requirement 2:

The Journal entry for amount contributing equal to share of profits by new partner.Solution: The Journal entry for contributing the amount by new partner is as follows:

Accounts Title and explanations Debit $ Credit $

Cash Account Dr. 81,000

Thompson Capital Account 81,000

(for contributing the amount on admission)

To determine

Requirement 3:

The Journal entry for the amount contributed by new partner in excess of his share of profits.

To determine

Requirement 4:

The Journal entry for amount contributed by new partner lower than the amount as per income sharing ratio.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 12, Problem P12.34BPGB

To determine

Admission of P means the new partner enters in to partnership firm sharing the profits or losses with the old partners in some agreed ratio. On admission of partner, the amount of equity shall be brought by him and the treatment need to be made for the amount brought.

Requirement1:

TheJournal entries required at purchase of share from the retiring partner.

To determine

Requirement 2:

The Journal entry for amount contributing equal to share of profits by new partner.Solution: The Journal entry for contributing the amount by new partner is as follows:

Accounts Title and explanations Debit $ Credit $

Cash Account Dr. 81,000

Thompson Capital Account 81,000

(for contributing the amount on admission)

To determine

Requirement 3:

The Journal entry for the amount contributed by new partner in excess of his share of profits.

To determine

Requirement 4:

The Journal entry for amount contributed by new partner lower than the amount as per income sharing ratio.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem P12.34BPGB

To determine

Admission of P means the new partner enters in to partnership firm sharing the profits or losses with the old partners in some agreed ratio. On admission of partner, the amount of equity shall be brought by him and the treatment need to be made for the amount brought.

Requirement1:

TheJournal entries required at purchase of share from the retiring partner.

To determine

Requirement 2:

The Journal entry for amount contributing equal to share of profits by new partner.Solution: The Journal entry for contributing the amount by new partner is as follows:

Accounts Title and explanations Debit $ Credit $

Cash Account Dr. 81,000

Thompson Capital Account 81,000

(for contributing the amount on admission)

To determine

Requirement 3:

The Journal entry for the amount contributed by new partner in excess of his share of profits.

To determine

Requirement 4:

The Journal entry for amount contributed by new partner lower than the amount as per income sharing ratio.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem P12.34BPGB

To determine

Admission of P means the new partner enters in to partnership firm sharing the profits or losses with the old partners in some agreed ratio. On admission of partner, the amount of equity shall be brought by him and the treatment need to be made for the amount brought.

Requirement1:

TheJournal entries required at purchase of share from the retiring partner.

To determine

Requirement 2:

The Journal entry for amount contributing equal to share of profits by new partner.Solution: The Journal entry for contributing the amount by new partner is as follows:

Accounts Title and explanations Debit $ Credit $

Cash Account Dr. 81,000

Thompson Capital Account 81,000

(for contributing the amount on admission)

To determine

Requirement 3:

The Journal entry for the amount contributed by new partner in excess of his share of profits.

To determine

Requirement 4:

The Journal entry for amount contributed by new partner lower than the amount as per income sharing ratio.

Answer 6

Chapter 12, Problem P12.34BPGB

To determine

Admission of P means the new partner enters in to partnership firm sharing the profits or losses with the old partners in some agreed ratio. On admission of partner, the amount of equity shall be brought by him and the treatment need to be made for the amount brought.

Requirement1:

TheJournal entries required at purchase of share from the retiring partner.

Answer 7

Chapter 12, Problem P12.34BPGB

To determine

Admission of P means the new partner enters in to partnership firm sharing the profits or losses with the old partners in some agreed ratio. On admission of partner, the amount of equity shall be brought by him and the treatment need to be made for the amount brought.

Requirement1:

TheJournal entries required at purchase of share from the retiring partner.

Answer 8

To determine

Requirement 2:

The Journal entry for amount contributing equal to share of profits by new partner.Solution: The Journal entry for contributing the amount by new partner is as follows:

Accounts Title and explanations Debit $ Credit $

Cash Account Dr. 81,000

Thompson Capital Account 81,000

(for contributing the amount on admission)

Answer 9

To determine

Requirement 2:

The Journal entry for amount contributing equal to share of profits by new partner.Solution: The Journal entry for contributing the amount by new partner is as follows:

Accounts Title and explanations Debit $ Credit $

Cash Account Dr. 81,000

Thompson Capital Account 81,000

(for contributing the amount on admission)

Answer 10

To determine

Requirement 3:

The Journal entry for the amount contributed by new partner in excess of his share of profits.

Answer 11

To determine

Requirement 3:

The Journal entry for the amount contributed by new partner in excess of his share of profits.

Answer 12

To determine

Requirement 4:

The Journal entry for amount contributed by new partner lower than the amount as per income sharing ratio.

Answer 13

To determine

Requirement 4:

The Journal entry for amount contributed by new partner lower than the amount as per income sharing ratio.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 12 - Prob. 1QC Ch. 12 - Prob. 2QC Ch. 12 - Prob. 3QC Ch. 12 - Which financial statement shows the changes in...Ch. 12 - Prob. 5QC Ch. 12 - Prob. 6QC Ch. 12 - Prob. 7QC Ch. 12 - Peter and Steve admit Meredith to their...Ch. 12 - Prob. 9QC Ch. 12 - Prob. 10QC

Accounts Title and explanations	Debit $	Credit $
Cash Account Dr.	81,000
Thompson Capital Account		81,000

(for contributing the amount on admission)

Requirement 3: The Journal entry for the amount contributed by new partner in excess of his share of profits.

Requirement 4: The Journal entry for amount contributed by new partner lower than the amount as per income sharing ratio.

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Chapter 12 Solutions

Requirement 3:

The Journal entry for the amount contributed by new partner in excess of his share of profits.

Requirement 4:

The Journal entry for amount contributed by new partner lower than the amount as per income sharing ratio.