Question
Djokovic, Federer and Nadal were partners of a firm having their interest 3:2:5 respectively. Their capitals are $ 100,000, $80,000 and $150,000 respectively. They agreed
Djokovic, Federer and Nadal were partners of a firm having their interest 3:2:5 respectively. Their capitals are $ 100,000, $80,000 and $150,000 respectively. They agreed to admit Murray as a new partner Required: Give the necessary journal entries and prepare balance sheet in each of the following cases separately: a) Murray agreed to bring sufficient cash for 1/4th share of new capital. b) If he contributed sufficient assets for 1/2th share of the new partnership, (brings machinery of $. 95,000 balance in cash) c) If he contributed certain assets in the shape of Office Equipment, Furniture merchandise at an agreed cost of each $ 18,000, $30,000 and $32,000 respectively, and the balance in cash for 1/3rd interest of the new partnership total capital. d) Murray invests $ 200,000 cash and receiving a 1/4th interest, his capital is to be credited of the entire amount of his investment
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started