At February 15, 2023 the capital balances and the profit/loss ratios in the DDD partnership were...
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At February 15, 2023 the capital balances and the profit/loss ratios in the DDD partnership were as follows. Partners Donaldson, D. Drapier, S Dong, N. Capital Balance $ 125,000 100,000 75,000 $ 300,000 Profit/ Loss Ratio 50% 40% 30% The next day, on February 16, 2023, S. Dharma is admitted to the partnership for 10% share capital by investment. After Dharma's admission, the total partnership capital is $340,000. Required: Answer the following questions. 1. How much was Dharma's cash investment in the partnership? 2. What was the total bonus allocated to the old partners? 3. What is the balance in each partner's capital account after Dharma's admission to the partnership? At February 15, 2023 the capital balances and the profit/loss ratios in the DDD partnership were as follows. Partners Donaldson, D. Drapier, S Dong, N. Capital Balance $ 125,000 100,000 75,000 $ 300,000 Profit/ Loss Ratio 50% 40% 30% The next day, on February 16, 2023, S. Dharma is admitted to the partnership for 10% share capital by investment. After Dharma's admission, the total partnership capital is $340,000. Required: Answer the following questions. 1. How much was Dharma's cash investment in the partnership? 2. What was the total bonus allocated to the old partners? 3. What is the balance in each partner's capital account after Dharma's admission to the partnership?
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Dharmas cash investment The total partnership capital after Dharmas admission is 340000 Dharmas shar... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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