The partners of Rann & Sloe LLP shared net income and losses in a 3:2 ratio and had capital account balances of $87,000 and $48,000, respectively. Trey was admitted to the partnership with the investment of a single proprietorship having identifiable net assets with a current fair value of $47,250 and was given a one-third interest in the net income or losses and the net assets of the new partnership.
Prepare a journal entry to record the admission of Trey to Rann, Sloe & Trey LLP.

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The Answer of The partners of Rann & Sloe LLP shared net income and losses in a 3:2 ratio and had capital account balances of $87,000 and $48,000, respectively. Trey was admitted to the partnership with the investment of a single proprietorship having identifiable net assets with a current fair value of $47,250 and was given a one-third interest in the net income or losses and the net assets of the new partnership.
Prepare a journal entry to record the admission of Trey to Rann, Sloe & Trey LLP.

The Partners of Rann & Sloe LLP Shared Net Income