Wilson, Player, and Sharp are in partnership. They shared profits in the ratio of 2:4:3. It is decided to admit Titmus. It is agreed that goodwill is worth £72,000 and that it is to be brought into the business records. Titmus will bring £30,000 cash into the business for capital. The new profit sharing ratio is to be Wilson 5: Player 8: Sharp 4: Titmus 3. The statement of financial position before Titmus was introduced was as follows: £ Assets (other than in cash) 200,000 Cash 2,000 Total assets 202,000 Liabilities 31,000) Net assets 171,000 Capitals: Wilson 57,000 Player 76,000 Sharp 38,000 171,000 Part? 

Partnership accounts and company accounts Show: 

1. (a) The entries in the capital accounts of Wilson, Player, Sharp, and litmus, the accounts to be in columnar form. 
2. (b)The statement of financial position after Titmus has been introduced.

Answer rating: 100% (QA)

working note 1 Total of balance sheet after Titmus admission 304000 2 Cash balanc... View the full answer