Following is the current balance sheet for local partnership of doctors:
Cash and current assets $30,000
Land...............................................................180,000
Building and Equipment (net).................100,000
Totals.............................................................$310,000
Liabilites......................................................$40,000
A. Capital.......................................................20,000
B, capital........................................................40,000
C, Capital........................................................90,000
D, Capital.......................................................120,000
Totals............................................................$310,000
Following questions represent independent conditions:
A. E is going to invest adequate money in this partnership to got 25 percent interest. No good-will or bonus is to be recorded. How much must E invest?
B. E contributes $36,000 in cash to business to get 10 percent interest in partnership Goodwill is to be recorded. Profits and losses have prior been split according to following percentages: A, 30 percent, B,10 percent; C, 40 percent; and D, 20 percent. After E makes this investment, determine the individual capital balances?
C. E contributes $42,000 in cash to business to get 20 percent interest in partnership. Goodwill is to be recorded. Four partners share all profits and losses equally. After E makes this investment, write down the individual capital balances?
D. E contributes $55,000 in cash to business to receive a 20 percent interest in partnership. No goodwill or other assets revaluation is to be recorded. Profits and losses have prior been split according to following percentages: A, 10 percent; B, 30 percent; C, 20 percent; and D, 40 percent. After E makes this investment, write down the individual capital balances?
E. C retires from partnershio and, as per original partnership agreement, is to get cahs equal to 125 percent of her final capital balance. No goodwill or other asset revaluation is to be recognized. All partners share profits and losses equally. After withdrawal, describe individual capital balances of remaining partners?