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Could someone work out and journalise question 3.

1. Jin & Sebastian form a partnership to offer consulting services in Sydney. Jin contributes $250,000 in cash, and computer equipment that he bought last year for $60,000 that has a current market value of $50,000. Sebastian owns a building that he previously used as part of his prior sole proprietorship. He bought it for $500,000 it has a carrying amount of $400,000 and a market value of $450,000. Provide the journal entries for the formation of the partnership.

Jin: 250,000 + 50,000 = 300,000. Seb: 450,000

Dr Cash 750,000

Cr Capital: Seb 300,000

Cr Capital: Jin 450,000

2. Jin & Sebastian make a profit of $250,000 in their first year of operations. Their partnership agreement states that the first $200,000 of profits and losses are allocated based on current capital contributions. The remaining profits and losses are split equally. Provide the journal entries to allocate the profit distribution.

Dr income summary 250,000

Cr capital Jin 105,000

Cr capital Seb 145,000

3. At the start of year 2, Jin & Sebastian are getting too busy to keep up with the demand of their clients. The partners agree to accept Terrences offer to join the partnership. Terrence pays $500,000 into the partnership for a 25% share of the capital. Jin & Sebastian update their partnership agreement and agree to split any capital bonus from the admission of a new partner equally. Journalise the admission of Terrence into the partnership.

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