Prepare journal entries to include Joko in the partnership

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Reference no: EM132922005

Question - Boby and Molly are partners in the retail business and share the profits 70 percent to Bobby and 30 percent to Molly. Their capital balances of December 31, 2020 are as follows:

Boby Capital 450,000

Molly's capital 450,000

Total capital IDR 900,000

Partnership assets and liabilities have book value equal to fair value. The partners agreed to accept Joko in the partnership. Joko buys one-third of Capital partnership and direct profits from Boby and Molly (one-third of their respective capital accounts) for IDR 150,000.

Required - Prepare journal entries to include Joko in the partnership, assuming that partnership assets are revalued.

Reference no: EM132922005

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