Accounting for admission of a new partner Flashcards
1
Q
Method 1
A
Account for capital introduced
2
Q
What is the double entry for capital introduced?
A
Debit bank
Credit capital account
3
Q
Method 2
A
Account for goodwill
4
Q
Method 3
A
Account for revaluation in old profit sharing ratio
5
Q
Method 4
A
Calculate new balances on the capital accounts of all partners
