Question

Part B (2020) a. On December 31, 2020 new partner D invests other assets into the partnership for a one-quarter ownership interest. An equal amount of capital is contributed by A, B, and C to make up the difference. At December 31, 2020, the partners' capital balances are as follows: A $200,000 B 180,000 C 190,000 $570,000 Fair value of other assets from D $50,000 b. Immediately after this, partner C withdraws from the partnership. She is paid in cash the balance in her capital account plus a bonus, contributed equally from the capital balances of A, B, and D. Bonus paid to C $18,000 Required 5 Prepare necessary adjusting entries at December 31, 2020 to record the admission of partner D and the withdrawal of partner C. Show all calculations.

Answer 1

Adjusting Entry at December 31 2020 to record the admission of partner D

Date Dr Cr

Dec31 2020 Assest a/c $ 50,000

To   D Capital a/c $ 50,000

( To record admission od Partner D)

Adjusting Entry at December 31 2020 to record the the withdrawal of partner C

Date Dr Cr

Dec31 2020 A Capital a/c $ 6,000

B Capital a/c $ 6,000

  C Capital a/c $ 190,000

D Capital a/c $ 6,000

   To Cash $ 2,08,000

total bonus paid to patner C is $ 18,000 divided by three patners A, B,D = $19000/3 = $ 6000 Per patner.