Admission of new partner-Bonus Methad Assume that Partners A and 8 each report a Capital...
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Admission of new partner-Bonus Methad Assume that Partners A and 8 each report a Capital Account of $450.000. Partner C wants to join the partnership as an equal one-third partner. Because the partnership has been very profitable, Partners A and B require Partner C to contrbute $900,000 in cash to the partnership in return for a one-third interest. Assume that Partners A and B share proas 60% and 40% respect ely, prior to the alrission af Partner C. After admits n of partner C, Partners A and B retain their relative proportion af profit allocation after granting Partner C a 30% profit-alocation interest. Use the Bonus Method to record the journai entry on the books of the partrvership to reflect the admission of Partner C journal entry on the books of the partnership to reflect the admission of Partner C apital Accou Partner A 5 6 8 pause
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