When a new partner is admitted to a partnership. there should be a(n)

When a new partner is admitted to a partnership, there should be a(n) a. revaluation of assets b. realization of assets c. al

Answer

When A new partner admins into a partnerdhip based on their agreement Assets may be revalued to fair value.

Realization and allocation of assets is done on liquidation of partnership.

There is no concept of return of assets in partnership accounting

therefore from the options OPTION A is Correct

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Profit or Loss Sharing ratio between partners is 2:1

Income of the partnership is $132,000

Expenses are salaries to partners are total of =$60000+$42000= $102,000

Net Profit of partnership after deducting expenses =$132000 - $102000=$30000

Share the net profit in 2:1 Between partners

Tanner Share = ($30000X2)/3 = $20,000

Teresa Share = ($30,000X1)/3 =$10,000

Total income to partners in the form salary and profit

Tanner = $42000+$20000=$62000

Teresa = $60000+$10000 = $70,000

Therefore from the options OPTION D is correct

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Capital Balances at the begining of the year is as follow

Sadie capital $42000

Sam capital $58000

Net Profit of the partnership is $40000

Profit sharing ratio is Equall

Sadie share od profit = $40000/2 =$20000

Sam share of profit =$40000/2 =$20000

calculation of closing capitals at the end of the year is as follows

Opening Capital Balance XXX

(+) Share of profit XXX

(-) Withdrawls (XXX)

Closing Capital Balance XXX

Sams Closing Capital Balance

Opening Balance $58000

(+) Share of Profit $20000

(-) Withdrawls made ($15000)

Closing Capital balance $63000

Therefore from the options OPTION C is Correct

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