Question

b. Dent invests $74,000 View transaction list Journal entry worksheet Record the Dent's admission and bonus. Note: Enter debits before credits. Date General Journal Debit Credit May 01, 2017 Record entry Clear entry View general journal

Answer 1

Ans-a- Total Capital of existing partners= $85,000+$70,000+$148,000= $303,000

Capital invested by Dent= $101,000

Total capital after new capital introduced by Dent= $303,000+$101,000= $404,000

Dent share in partner ship= 25%

Required share of capital by Dent= $404,000*25%= 101,000

Therefore, there is no adjustment on admission of Dent.

Journal Entries- Admission of Partner

Date	General Journal	Debit ($)	Credit ($)
May 01, 2017	Cash A/c Dr.	101,000
	Dent's Capital A/c		101,000
	(To record the capital on admission of Dent in partnership)

Ans-b- Total Capital of existing partners= $85,000+$70,000+$148,000= $303,000

Capital invested by Dent= $74,000

Total capital after new capital introduced by Dent= $303,000+$74,000= $377,000

Dent share in partner ship= 25%

Required share of capital by Dent= $377,000*25%=$94,250

As capital invested by Dent is lower than required capital, therefore existing partner will give bonus to Dent to cover shortfall of $ 20,250 in proportion of 3:2:5.

Journal Entries- Admission of Partner

Date	General Journal	Debit ($)	Credit ($)
May 01, 2017	Cash A/ c Dr.	74,000
	Dent's Capital A/c		74,000
	(To record the capital on admission of Dent in partnership)
May 01, 2017	Zeller's Capital A/c Dr. ($20,250*3/10)	6,075
	Acker's Capital A/c Dr. ($20,250*2/10)	4,050
	Benton's Capital A/c Dr. ($20,250*5/10)	10,125
	Dent's Capital A/c		20,250
	(To record the bonus distributed to new partner by existing partner)

Ans-c- Total Capital of existing partners= $85,000+$70,000+$148,000= $303,000

Capital invested by Dent= $132,000

Total capital after new capital introduced by Dent= $303,000+$132,000= $435,000

Dent share in partner ship= 25%

Required share of capital by Dent= $435,000*25%= $108,750

As capital invested by Dent is higher than required capital, bonus capital of $23,250($132,000-$108,750) introduced by Dent will be distributed in existing partner in the ratio of 3:2:5

Journal Entries- Admission of partner

Date	General Journal	Debit ($)	Credit ($)
May 01, 2017	Cash A/c Dr.	132,000
	Dent's Capital A/c		132,000
	(To record the capital on admission of Dent in partnership)
May 01, 2017	Dent's Capital A/c Dr.	23,250
	Zeller's Capital A/c ($23,250*3/10)		6,975
	Acker's Capital A/c ($23,250*2/10)		4,650
	Benton's Capital A/c ($23,250*5/10)		11,625
	(To record the bonus distributed to existing partner by new partner)

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