Question

X and Y have capital balances of 150,000 and 180,000 respectively. Z is to invest 60,000 for 15% in the partnership interest and also in profits and losses. There is an undistributed net income in the amount of 80,000. Partners X and Y share profits and losses 65:35. How much is the capital credit of Z upon his admission? a. 70,500 b. 61,500 c. 72,000 d. Answer not given

Name: x and y has capital balances of 150000 and 180000 respectively z is to invest 60000 for 15 in the partnership interest and also in profits and losses there is an undistributed net income in 84983
Uploaded: 2023-09-05T20:06:58-08:00
Duration: 2 min 20 s
Channel: Supreeta N
Description: x and y has capital balances of 150000 and 180000 respectively z is to invest 60000 for 15 in the partnership interest and also in profits and losses there is an undistributed net income in 84983

          X and Y have capital balances of 150,000 and 180,000 respectively. Z is to invest 60,000 for 15% in the partnership interest and also in profits and losses. There is an undistributed net income in the amount of 80,000. Partners X and Y share profits and losses 65:35. How much is the capital credit of Z upon his admission?
    a. 70,500
    b. 61,500
    c. 72,000
    d. Answer not given

Added by Jennifer H.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Supreeta N

09/05/2023

Step 1

First, we need to find the total capital of the partnership before Z's admission. This includes the capital balances of X and Y, and the undistributed net income. Total capital before Z's admission = 150,000 (X's capital) + 180,000 (Y's capital) + 80,000 Show more…

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X and Y have capital balances of 150,000 and 180,000 respectively. Z is to invest 60,000 for 15% in the partnership interest and also in profits and losses. There is an undistributed net income in the amount of 80,000. Partners X and Y share profits and losses 65:35. How much is the capital credit of Z upon his admission? a. 70,500 b. 61,500 c. 72,000 d. Answer not given