Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2 (4 marks) Tasneem and Shireen are partners in a firm. Their capital accounts showed the balance on Jan 1, 2021 as JD 100,000,
Question 2 (4 marks) Tasneem and Shireen are partners in a firm. Their capital accounts showed the balance on Jan 1, 2021 as JD 100,000, JD 120,000 respectively. And share Profits & Losses 40%, 60% respectively, they have agreed to admit Nada as a new partner in the company. Nada will invest JD 130,000 cash for 20% of capital & profits after admission. Required: 1) Journalize the entry to record the admission of Nada by using Goodwill method. 2) Capital balance of the firm and share capital balances of all partners after admission by using Goodwill method. 3) Journalize the entry to record the admission of Nada by using bonus method. 4) Capital balance of the firm and share capital balances of all partners after admission by using bonus method. 5) Calculate the new profit-sharing ratio after the admission
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started