Accounting …

Assume that (L & M) share net income or

losses equally and each has a capital balance of $
60,000. (N) Acquires one-half of (L)' interest in
the partnership by a cash payment to (L).

The entry would be:-

Assume that (C & D) partnership share net

income and losses equally and have capital
balances of $ 45000 each. They agree to admit (E)
to one – third interest in capital and one –third in
net income or losses for a cash investment of $
60,000.

Mr. Kareem Abozeed -1-

Accounting …

Solve:-

The entry would be:-

 Good will to existing partners:-

Assume in the previous example the new

partner asked to receive a capital equal to cash
provided by him, this means his capital will equal
1
$ 60,000. Each partner ( 3 of net capital)

Solve:-
The entry would be:-

Mr. Kareem Abozeed -2-