On January 1 , Riya and Syed entered a partnership of textile exports and imports. They agreed
Question:
On January Riya and Syed entered a partnership of textile exports and imports. They agreed to distribute profits and losses in a ratio of : They contributed the following assets to the partnership: Riya contributed $ in cash. Syed contributed equipment valued at $ On December they earned a profit net income of $
Year On July Ken joined the partnership with a bonus. Ken invested $ in cash. The profit or loss agreement will be :: once Ken is admitted. On December they earned a profit of $
Year On February Sam was admitted to the partnership without a bonus. Partner Sam contributed $ in cash. The profit or loss agreement will be ::: once Sam is admitted.
On December they earned a profit of $ After two years, on March Riya decided to retire. The remaining partnership agreed to settle Riya's capital account on the basis of their revised profit and loss ratio of :: On December the firm earned a profit of $
Based on the given transaction, complete the following tasks:
Journalize the transaction. Compute the distribution of profit and loss of the partners. Calculate the bonus.
Calculate the contribution of partners toward the withdrawal.
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker