Question

the partnership of tasha and bill shares profits and losses in a 50:50 ratio, and the...

the partnership of tasha and bill shares profits and losses in a 50:50 ratio, and the partners have capital balances of $45,000 each. Prepare a schedule showing how the bonus should be divided if Ashanti joins the partnership with a $60.000 investment. The partner's new agreement will share profit and loss in a 1:3 ratio
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Answer #1

New partner's capital credit = 1/3 *(150000) = 50000

Total bonus of old partners = Investment by new partner - New partner's capital

= 60000 - 50000

=10000

Particulars Amount
Total capital balances of old partners $ 90000
Partner's old ratio 50:50
Investment by Ashanti $ 60000
New Total capital balance $ 150000
New partner's capital credit $ 50000
Total bonus of old partners $ 10000

Since Tasha and bill shares bonus in 50:50 ratio

Tasha's bonus =$ 5000

Bill's bonus =$ 5000

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