Accounting for Partnerships B. Dropping a Partner During the two years following the admission of...
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Accounting
Accounting for Partnerships
B. Dropping a Partner
During the two years following the admission of Dharma, the partnership was dissolved and a new one was created when Dong retired. Now, at April 30, 2025, the partners' capital balances were as follows:
Capital
Partners
Donaldson, D.
Drapier, S Dharma, A
Balance
$ 180,000
120,000
150,000
$ 450,000
The partners share profit equally. On May 1, 2025 Draper withdrew from the partnership and is paid by the partnership firm an amount of $150000.
Required: Answer the following questions.
- What was the bonus to the retiring or remaining partners?
- How much bonus/loss is allocated to each of the remaining partners?
- What was the total partnership capital and percentage ownership of the two partners after Draper left the partnership?
Accounting for Partnerships
B. Dropping a Partner
During the two years following the admission of Dharma, the partnership was dissolved and a new one was created when Dong retired. Now, at April 30, 2025, the partners' capital balances were as follows:
Capital
Partners
Donaldson, D.
Drapier, S Dharma, A
Balance
$ 180,000
120,000
150,000
$ 450,000
The partners share profit equally. On May 1, 2025 Draper withdrew from the partnership and is paid by the partnership firm an amount of $150000.
Required: Answer the following questions.
- What was the bonus to the retiring or remaining partners?
- How much bonus/loss is allocated to each of the remaining partners?
- What was the total partnership capital and percentage ownership of the two partners after Draper left the partnership?
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