Question
Layla, Sameera, and Jana are partners in LSJ partnership. They share income/ loss in a ratio of 30% : 30% : 40% respectively. On 1/1/2021,
Layla, Sameera, and Jana are partners in LSJ partnership. They share income/ loss in a ratio of 30% : 30% : 40% respectively.
On 1/1/2021, a new partner (Dana) was admitted into the partnership, forming a new LSJD partnership. To join, Dana invested cash in the business and was given a 30% interest in the new partnership. Based on her investment, Dana's capital account was credited for $54,000.
If you know that the total capital for LSJ partnership was $150,000 (before Dana was admitted), and Jana's capital became $40,400 after the transaction.
Required: Calculate the capital balance for Jana, before Dana was admitted.
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Ethical Obligations and Decision Making in Accounting Text and Cases
Authors: Steven Mintz, Roselyn Morris
4th edition
978-1259543470, 1259543471, 978-1259730191
