Answer to Question #262769 in Financial Math for Nicolle

Question

Alcantara, Budoy, and Dinoy have equities in a partnership of 600,000, 900,000, and 500,000, respectively, and share profits and losses in a ratio of 2:1:2, respectively. The partners have agreed to admit Ledda to the partnership. 

Required: Prepare the journal entries to record the admission of Ledda to the partnership under each of the following: 

1. Ledda invested 500,000 for 30%, and bonus is recorded for Ledda. 

2. Ledda invested 750,00 for a one-fifth interest, and bonus is recorded for the old. 

Answer 1

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