When a new partner is admitted to a partnership. there should be a(n)

When a new partner is admitted to a partnership, there should be a(n) a. revaluation of assets b. realization of assets c. allocation of assets d. return of assets Tanner and Teresa share income and losses in a 2:1 ratio after allowing for salaries of $42,000 to Tanner and $60,000 to Teresa. Net income of the partnership is $132,000. Income should be divided as follows: a. Tanner, $57,000; Teresa, $75,000 b. Tanner, $58,000; Teresa, $74,000 c. Tanner, $75,000; Teresa, $57.000 d. Tanner, $62,000; Teresa, $70,000 Sadie and Sam share income equally. For the current year, the partnership net income is $40,000. Sadie made withdrawals of $14,000 and Sam made withdrawals of $15,000. At the beginning of the year, the capital account balances were: Sadie, Capital, $42,000: Sam, Capital, $58,000. Sams capital account balance at the end of the year is a. $78,000 b. $43,000 c. $63,000 d. $93,000

When a new partner is admitted to a partnership, there should be a(n) a. revaluation of assets b. realization of assets c. allocation of assets d. return of assets Tanner and Teresa share income and losses in a 2:1 ratio after allowing for salaries of $42,000 to Tanner and $60,000 to Teresa. Net income of the partnership is $132,000. Income should be divided as follows: a. Tanner, $57,000; Teresa, $75,000 b. Tanner, $58,000; Teresa, $74,000 c. Tanner, $75,000; Teresa, $57.000 d. Tanner, $62,000; Teresa, $70,000 Sadie and Sam share income equally. For the current year, the partnership net income is $40,000. Sadie made withdrawals of $14,000 and Sam made withdrawals of $15,000. At the beginning of the year, the capital account balances were: Sadie, Capital, $42,000: Sam, Capital, $58,000. Sam’s capital account balance at the end of the year is a. $78,000 b. $43,000 c. $63,000 d. $93,000

When A new partner admins into a partnerdhip based on their
agreement Assets may be revalued to fair value.
Realization and allocation of assets is done on liquidation of
partnership.
There is no concept of return of assets in partnership
accounting
therefore from the options OPTION A is Correct
————————————————————————————-
Profit or Loss Sharing ratio between partners is 2:1
Income of the partnership is $132,000
Expenses are salaries to partners are total of =$60000+$42000=
$102,000
Net Profit of partnership after deducting expenses =$132000 –
$102000=$30000
Share the net profit in 2:1 Between partners
Tanner Share = ($30000X2)/3 = $20,000
Teresa Share = ($30,000X1)/3 =$10,000
Total income to partners in the form salary and profit
Tanner = $42000+$20000=$62000
Teresa = $60000+$10000 = $70,000
Therefore from the options OPTION D is correct
——————————————————————————–
Capital Balances at the begining of the year is as follow
Sadie capital $42000
Sam capital $58000
Net Profit of the partnership is $40000
Profit sharing ratio is Equall
Sadie share od profit = $40000/2 =$20000
Sam share of profit =$40000/2 =$20000
calculation of closing capitals at the end of the year is as
follows
Opening Capital Balance XXX
(+) Share of profit XXX
(-) Withdrawls (XXX)
Closing Capital Balance XXX
Sams Closing Capital Balance
Opening Balance $58000
(+) Share of Profit $20000
(-) Withdrawls made ($15000)
Closing Capital balance $63000
Therefore from the options OPTION C is Correct

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