Illustration of admission of a new partner, Financial Accounting

Illustration of Admission of a new partner

XYZ have been trading as equal partners having capital contributions of £300,000, £250,000 and £200,000 respectively.  They  agreed  to admit W who agrees to pay capital of £350 which is inclusive of his share of goodwill.  The new profit sharing ration will not be X:Y:Z:W : 4:3:2:1.  Goodwill has been agreed at £200,000.

Required:

Prepare the partners capital accounts to record admission of W and assuming that Goodwill is not to be retained in the accounts.

Capital account

 

X

Y

X

W

 

X

Y

Z

W

Goodwill

80

160

40

20

Bal. b/d

300

250

200

-

Bal c/d

286.667

256.667

226.666

330

Goodwill

66.667

66.667

66.666

-

 

 

 

 

 

bank

 

 

 

350

 

366.667

316.667

266.666

350

 

366.667

316.667

226.667

350

Posted Date: 12/11/2012 6:14:17 AM | Location : United States







Related Discussions:- Illustration of admission of a new partner, Assignment Help, Ask Question on Illustration of admission of a new partner, Get Answer, Expert's Help, Illustration of admission of a new partner Discussions

Write discussion on Illustration of admission of a new partner
Your posts are moderated
Related Questions
Problem 1 Seven years ago a semi-annual coupon bond with a 10% coupon rate, $1,000 face value and 15 years to maturity was issued by Corn Inc.. Teddy bought this bond two years ag

The standard EOQ model supposes that materials can be procured immediately and thus implies that the firm may place an order for replenishment as the inventory level drops to zero.

following are the amounts of the assets and liabilities of St. Kitts Travel Agency at December 31, 2010, the end of the current year, and its revenue and expenses for the year. The

Considering the following information, what is the price of the share as per Gordon’s Model? Details of the Company Net sales Rs.120 lakhs Net profit margin 12.5% Outstanding prefe

Would you invest in a project that has a net investment of $14,600 and a single net cash flow of $24,900 in 5 years, if your required rate of return was 12 percent?

Problem 1 (28 marks) Pre-Contribution Balance Sheets and Fair Values June 30, 20X9 (in thousands of $) Swag Co. Perk Ltd. Pre- Contribution Fair Value Pre- Contributi

liabilities and its types

Accounting Policies These financial statements have been prepared under the historical cost basis of accounting which is modified to accommodate the revaluation of certain proper

Describe the following questions:- Q.1 Explain how financial statements assist in the capital allocation process. How are financial statements limited? Which financial statement

EXPRESS TRUSTS Creation : An express trust is "created not by facts and circumstances, but by the express words of the settlor". (Fitzgerald v Stewart) Completely an