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Change of partners Assume that Partners A and B each report a Capital Account of $750,000. Partner A wants to retire and sell her partnership

Change of partners
Assume that Partners A and B each report a Capital Account of $750,000. Partner A wants to retire and sell her partnership interest to Partner C for $1,000,000. Partner B agrees tot he sale and admission of Partner C into the partnership at an equal ownership percentage.

Record the journal entry on the books of the partnership to reflect the admission of Partner C using both the Bonus Method and Goodwill Method.

Change of partners Assume that Partners A and B each report a Capital Account of $750,000. Partner A wants to retire and sell her partnership interest to Partner C for $1,000,000. Partner B agrees to the sale and admission of Partner C into the partnership at an equal ownership percentage. Record the journal entry on the books of the partnership to reflect the admission of Partner C using both the Bonus Method and the Goodwill Method. Bonus Method: General Journal Description Debit Credit

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