The capital balances for the partnership of Ajeet, rAHUL, and Suresh are as follows:

Capital--Ajeet 360,000

Capital---Rahul 300,000

Capital-----Suresh 450,000

the partnership profit sharing ratio 3:2:5 a new partner, Harish enters the patnership bu purchasing existing interest in the partnership

prepare the journal entry to record Harish's admission to the partnership, and compute the new capital balances, in each of the following cases.

a. Harish pays A jeet $400,000 for his entire interest in the partnership. there is no revaluation of parnership assets.

b. Harish pays the three partners a total of $350,000 for 20 percent of each of the partner's interests. there is no revaluation of partnership assets.

c. Repeat part b, assuming revaluation of partnership assets by recoring goodwill.

Answer rating: 100% (QA)

Answer to part c JOURNAL ENTRY FOR GOODWILL Date Account Titles Debit in Credit in 1 Goodwill Dr 640... View the full answer