The Simra Brothers Partnership had the following statement of partners equity for the years ended December 31,
Question:
The Simra Brothers Partnership had the following statement of partners’ equity for the years ended December 31, 2019, and 2020. This is similar to the statement of partners’ equity shown in Exhibit 12–3.
Required
1. What was the profit-and-loss-sharing ratio in 2019?
2. Refer to Amin’s contribution, which was made in cash. How much cash did Amin contribute to the partnership?
3. What percentage of interest did Amin obtain?
4. Why do Harry and Sunny have additions to their balances as a result of Amin’s contribution?
5. What was the profit-and-loss-sharing ratio in 2020?
Step by Step Answer:
Horngrens Accounting
ISBN: 9780135359785
11th Canadian Edition Volume 2
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood