Exercise 4-6. Admission by purchase with the computation of capital balances of the old partners after admission. Suppose Beth is to be admitted in the BFF Partnership by purchasing one- half interest of Rey for P15,000 and one-fourth interest of Normita and Pening for P6,000 and P9,000, respectively. Prior to admission, the following is the statement of financial position of BFF Partnership: BFF Partnership Statement of Financial Position September 30, 2023 w galv Assets Cash Other Assets Total Assets Liabilities and Partners Equity Liabilities Rey, Capital (30%) Normita, Capital (20%) Pening, Capital (50%) Total Liabilities and Partners Equity P115,000 125,000 P240,000 P140,000 30,000 20,000 50,000 P240,000 Required: What are the capital balances of Rey, Normita and Pening after the admission of Beth?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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