Saleem, Hani, and Osama are partners in SHO partnership. Their capital balances on 31/12/2020 are given below: Saleem $ 50,000 Hani $ 50,000 Osama $ 40,000. On 1/1/2021, Raed is accepted as a new partner. He will invest an amount of cash into the partnership, to allow him to get a 30% share in the new partnership’s total capital, with no bonuses given to anyone. How much did he invest as cash?
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.
Saleem, Hani, and Osama are partners in SHO partnership. Their capital balances on 31/12/2020 are given below: Saleem $ 50,000 Hani $ 50,000 Osama $ 40,000. On 1/1/2021, Raed is accepted as a new partner. He will invest an amount of cash into the partnership, to allow him to get a 30% share in the new partnership’s total capital, with no bonuses given to anyone. How much did he invest as cash?
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