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Assignment 2-محول

This document appears to be an assignment for an accounting course. It contains two questions regarding partnerships. The first question asks the student to prepare journal entries to record the admission of a new partner to an existing partnership under two scenarios. The second question asks the student to journalize the withdrawal of an existing partner from a partnership under three different scenarios. The document provides relevant financial details, such as capital balances and income ratios, to answer the questions.

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mariam raafat
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22 views

Assignment 2-محول

This document appears to be an assignment for an accounting course. It contains two questions regarding partnerships. The first question asks the student to prepare journal entries to record the admission of a new partner to an existing partnership under two scenarios. The second question asks the student to journalize the withdrawal of an existing partner from a partnership under three different scenarios. The document provides relevant financial details, such as capital balances and income ratios, to answer the questions.

Uploaded by

mariam raafat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Egyptian Chinese University

Faculty of Economics and international Trade


Accounting Department

Student Name
ID

Assignment (2)
Question1
S. Pagan and T. Tabor share income on a 6:4 basis. They have capital
balances of $100,000 and $60,000, respectively, when W. Wolford is
admitted to the partnership.
Instructions Prepare the journal entry to record the admission of W.
Wolford under each of the following assumptions.
(a) Investment of $90,000 cash for a 30% ownership interest with
bonuses to the existing partners.
(b) Investment of $50,000 cash for a 30% ownership interest with a
bonus to the new partner.
Question2
On December 31,the capital balances and income ratios in FAD Company are as
follows.
Capital Balance for J. Fagan is $60,000 , P. Ames is 40,000 and for K. Durham is
26,000, partners share Income Ratio by 50% 30% 20% Respectively
Instructions
Journalize the withdrawal of Durham under each of the following assumptions.
(1) Each of the continuing partners agrees to pay $18,000 in cash from personal
funds to purchase Durham’s ownership equity. Each receives 50% of Durham’s
equity.
(2) Durham is paid $34,000 from partnership assets, which includes a bonus to
the retiring partner.
(3) Durham is paid $22,000 from partnership assets, and bonuses to the
remaining partners are recognized.

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