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Amar and Moham are equal parthners in a retail clothing business. They each contributed $240,000. Afterwards it was agreed that Lee should join the parthnership
Amar and Moham are equal parthners in a retail clothing business. They each contributed $240,000. Afterwards it was agreed that Lee should join the parthnership with all three partners sharing profits equally. For the purpose of admitting the new parthner the goodwillin the business was valued at $180,000. Goodwill is not to be maintained in the accounts. Lee bought in cash of $160,000 i$to the business. Prepare the capital accounts of parthnership showing clearly the adjusted balances after the admission of the new parthner
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