Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2 (8 marks) Ahmad and Hamzeh are partners in a firm. Their capital accounts showed the balance on Jan 1, 2022 as JD
Question 2 (8 marks) Ahmad and Hamzeh are partners in a firm. Their capital accounts showed the balance on Jan 1, 2022 as JD 70,000, JD 60,000 respectively. And share Profits & Losses 40%, 60% respectively, they have agreed to admit Karam as a new partner in the company. Karam will invest JD 50,000 cash for 20% of capital & profits after admission. Required: 1) Journalize the entry to record the admission of Karam by using Goodwill method. 2) Journalize the entry to record the admission of Karam by using bonus method. 3) Capital balance of the firm after admission by using Goodwill method equal............. 4) Capital balance of the firm after admission by using bonus method equal 5) Hamzeh's new profit-sharing ratio after the admission equal 6) Ahmad's share capital balance after admission by using Goodwill method equal.......... 7) Hamzeh's share capital balance after admission by using bonus method equal.............. 7) Karam's share capital balance after admission by using bonus method equal........
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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