A is allowed to be new partner by

CASE 3 purchasing 25% partnership interest

for $80,000

Previous
X 50000 X 4 4615.3846
Y 60000 Y 4 4615.3846
Z 70000 Z 5 5769.2308
Total old partner capital 180000 Total 13

BONUS METHOD
NOW Partner Capital
X 50000 A 65000
Y 60000 X 54615.385
Z 70000 Y 64615.385
Total old partner capital 180000 Z 75769.231
New partner capital 80000 Total 260000
Total capital 260000

Journal
Interest of A Cash
25% × 260,000 65000 Capital X
New capital 80000 Capital Y
Bonus for all partner 15000 Capital Z
Capital A

GOODWILL METHOD

New capital 80000 X 4 18461.538

Interest 25% Y 4 18461.538
Total capital 320000 Z 5 23076.923
Total capital old and new 260000 Total 13
Goodwill for old partner 60000

NOW Partner Capital

A 80000
X 68461.538
Y 78461.538
Z 93076.923
Total 320000

A is allowed to be new partner by

CASE 4 purchasing 25% partnership interest
for $50,000
 Previous
X 50000 X 4 -2307.692
Y 60000 Y 4 -2307.692
Z 70000 Z 5 -2884.615
Total old partner capital 180000 Total 13

BONUS METHOD
NOW Partner Capital
X 50000 A 57500
Y 60000 X 47692.308
Z 70000 Y 57692.308
Total old partner capital 180000 Z 67115.385
New partner capital 50000 Total 230000
Total capital 230000

Journal
Interest of A Cash
25% × 230,000 57500 Capital X
New capital 50000 Capital Y
Bonus for all partner -7500 Capital Z
Capital A

GOODWILL METHOD

New capital 50000 X 4 -9230.769

Interest 25% Y 4 -9230.769
Total capital 200000 Z 5 -11538.46
Total capital old and new 230000 Total 13
Goodwill for old partner -30000

NOW Partner Capital

A 50000
X 40769.231
Y 50769.231
Z 58461.538
Total 200000
PLSR
25%
21%
25%
29%
100%

80000
4615.3846
4615.3846
5769.2308
65000

PLSR
25%
21.39%
24.52%
29.09%
100%
PLSR
25%
21%
25%
29%
100%

50000
2307.6923
2307.6923
2884.6154
57500

PLSR
25%
20.38%
25.38%
29.23%
100%