A partnership has the following capital balances: Natalie (70% of gains and losses)………………………………..$200,000 Annie (30% of gains and losses)……………………………….....$150,000 Rachel is going to pay a $90,000 to these two partners to acquire a 20% interest from each. Goodwill is to be recorded. What’s Natalie’s capital balance after the transaction?
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.
A
Natalie (70% of gains and losses)………………………………..$200,000
Annie (30% of gains and losses)……………………………….....$150,000
Rachel is going to pay a $90,000 to these two partners to acquire a 20% interest from each.
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