Admission Problems
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Transcript of Admission Problems
Second: Investing an asset in the partnership
(1) BONUS Method
(2) GOOD WILL Method
GOOD WILL for new partner:When the new partner contributes (invests) his sole proprietorship in the partnership with fair value more than assets present,
Good will is recorded to the new partner
EXAMPLE
Re-valuation of assets indicates that fair value of “C” net assets is $ 70,000
Partner C invests the following
Assets 80,000 A/P 20,000
Capital 60,000
80,000 80,000
THIRD: Admission of a new partner but after
revaluation of assets
Problem ONE: “EXAM 1999”
REQUIRED
Prepare journal entries to record the admission of “D” using GOOD WILL method & BONUS method.
EXERCISES & PROBLEMS ON ADMISSION
Problem TWO:
Problem THREE:
Problem FOUR:
Problem FIVE:
Problem SIX:
Problem SEVEN:
Problem EIGHT:
(GOOD WILL)
Problem ELEVEN :
Problem TWELVE:
Problem THIRTEEN:
Problem FOURTEEN:
Problem FIFTEEN:
Problem SIXTEEN:
Problem SEVENTEEN:
Problem EIGHTEEN:
Problem NINETEEN:
Problem TWENTY: