Group Exerciser 4-10. Admission by Investment with the computation of capital balances of the old partners after admission. A and B are partners in AB Partnership with the following capital balances as of October 31, prior to admission of C: A, Capital (40%) B, Capital (60%) P60,000 60,000 C is to be admitted into the partnership by investing additional cash of P48,000 for a 25% interest. Required: 1. What is the journal entry to record C's admission in the partnership 2. What are the capital balances of partners A and B after the admission of C?
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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