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
Significant Findings or Issues - Substantive matters which are vital to procedures performed, conclusions reached or evidence obtained and include though aren't limited to: 1.

zorn conducted his professional practice through zorn, inc. the corporation uses a fiscal year ending september 30 even though the business purpose test for a fiscal year cannot be

Continuing growth of the company has required that we issue the company's corporate debt soon. As you know, in 6 months we plan to issue $10 million worth of 20-year corporate bond

1. Think about the transactions listed below. a. A company obtains a $10,000 loan from a bank. b. A company purchases $15,000 of inventory from its suppliers. They paid $5,000 toda

how do i find info about google inc

HOW DOES ACCOUNTING THEORY INFLUENCE ACCOUNTING POLICY MAKING

The Brownstone Corporation's bonds have 7 years remaining to maturity. Interest is paid yearly, the bonds have a $1,000 par value, and the coupon interest rate is 10%. a.

Tally & Co. incurred a pretax operating loss of $100,000 in its first year of operations for both financial reporting and income tax purposes. However, it expects to be profitable


concept meaning features scope importance origin initiative in india