Assume ( A ) and ( B ) partnership A , Capital is $ 8000and ( B ) , capital

is 4000 they agree to admit partner ( C ) for 25% of the total capital of the
partnership for 6000 cash . (( The ratios of A and B are 60% for (A) 40%
for (B)

Required :
 Prepare the entry of admission of partner C :
(A) under Bonus method .
(B) under good will method .

(A) under Bonus method :

Total capital of the partnership will be :

8000 + 4000 + 6000 = $18000

Partner © capital would be : 25% × 18000 = $4500
So , partner (C) paid $6000 cash and would take $4500capital .
So the Bonus to existing partners is 1500%

Cash 6000

(1500 × 60%) A,capital 900

(1500 × 40%) B, capital 600

MR : Kareem Abo Zied 1 0128385030

 C, capital 4500

(B) under goodwill method :

Partner (C) would take the same as the assets provided by him
under goodwill method So, partner (C) would take capital eqal to
6000%

6000% capital of partner (C) would represent 25% of the total capital of
the partnership

So, Assumed total capital 6000

would be = =24000%
25%
So , total capital of A + B + C = 24000
So capital of A + B + 6000 = 24000
So, capital of (A + B) would be = 24000 – 6000 = $18000
The old capital of (A + B) was = 8000 + 4000 =$12000

So, we would increase them by $6000 ( goodwill )

Cash 6000

goodwill 6000

(6000 × 60%) A,capital 3600

(6000 × 40%) B, capital 2400

C, capital 6000

MR : Kareem Abo Zied 2 0128385030

Assume A and B partnership (A) capital is 8000$ and (B) capital is 4000$
they agree to admit partner (C) for 25% the total capital of the partnership
for 2000$ cash ( The ratios of A and A are 60% to (A) 40% to (B)

Requied :
 Prepare the entry to record admission of partner (C) :
(A) under Bouns method .
(B) under goodwill method .

(A) under Bouns method :

The capital of the partnership would be :

8000 + 4000 + 2000 = $14000

Partner (C) capital would would be : 25% × 14000 = $3500
So, partner (C) paid 2000$ cash and would take $3500 capital .
So the Bouns to new partner is 1500

Cash 2000

A,capital (1500 × 60%) 900

B, capital (1500 × 40%) 600

C, capital 3500

(B) under goodwill method :

Partner (C) would take the same as the assets provided by him
under goodwill method .

MR : Kareem Abo Zied 3 0128385030

Partner (C) would take 25% of total capital
So , partner ( A +B ) would take 75% wich is ( 8000 + 4000 ) = 12000

So, total capital of ( A12000

+B+C)= = $16000
75%
So, (C) would take capital of 4000 and invest only $2000, so, his
goodwill $2000

Cash 2000
goodwill 2000

C, capital 4000

Assume that A, capital is $50000and B, capital is 30000 .، A and B agree

to admit (C) for purchasing 50 % of interest of A and B for $30000 and
$20000 respectively prepare the entry for admission of partner (C)
( A +B ) = 50000 + 30000 = $ 20000
We ignore the differences brtween cash and capital

A, capital ( 50% × 50000 ) 25000

The
capital B, capital (50% × 30000 ) 15000
would
be the
C, capital 40000
same :
(
A + B + C ) = 25000 + 15000 + 40000 =$80000

sssssss

MR : Kareem Abo Zied 4 0128385030

R , S , T partnership, Assume that each partner has acapital balance of
$80000 and share net income and losses equally . Assume that partner R,
withdraw from the partnership and Receive his capital balance and share
in total goodwill was $60000
Required :
(A) prepare Journal entry torecord retirement of (R)
(B) prepare Journal entry assuming partner (R) receives only $ 45000

(A):
1 = 60000 ×
Goodwill of partner (R) = $ 20000
3
So , partner (R) would receive = 60000 + 20000 = 80000 cash

R, capital 60000
S, capital 10000
T, capital 10000

cash 80000

(B):

R, capital 60000

S, 7500
capital 7500
T,
capital 4500

cash

MR : Kareem Abo Zied 5 0128385030