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Prepare the entries to record the admission

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Question - Partnership Dissolution - Bonnie and Daisy are partners with capital balances of 400,000 and 320,000 respectively. Profits and losses are shared equally. Accounting books have been closed after the regular adjustments were prepared. The company is considering the admission of Maggie, a new partner, who is interested in buying 50% interest from anyone of the partners. The following options are open:

(a) Daisy is offering a price of 150,000 for the interest Maggie wants to buy.

(b) Bonnie is willing to sell half her interest in exchange for the car of Maggie which was acquired for 500,000 but is currently worth half the price.

(c) Daisy is willing to sell half of her interest for 200,000. The partners agree to revalue the firm's asset first before Maggie's admission.

(d) Bonnie and Daisy are willing to sell half of the partnership equity for 300,000 after revaluing the assets.

Required -

a. Prepare the entries to record the admission of Maggie based on each of the above options.

b. Prepare the revised partners' equity for option (d).

Reference no: EM132906814

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