Question
The partners of the PQ partnership agree to admit a new partner (R) into the partnership. Below is information about the partnership immediately before admitting
The partners of the PQ partnership agree to admit a new partner (R) into the partnership. Below is information about the partnership immediately before admitting R.
|
| P | Q |
| Capital Balance | $150,000 | $50,000 |
| Profit/Loss sharing ratio | 40% | 60% |
agrees to pay $30,000 for a 10% interest in the partnership. Make the journal entry to admit R assuming that the payment is made to
a) the existing partners and the bonus method is used
b) the partnership and the bonus method is used
c) the existing partners and the goodwill method is used
d) the partnership and the goodwill method is used
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