The capital account balances for Ray & Randall LLP on May 31, 2006, were as follows:
Ray and Randall shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit Appleton to the partnership with a 35% interest in partnership capital and net income. Appleton invested $80,000 cash, and no goodwill was recognized.
Prepare a working paper to compute the capital account balance for each partner immediately after Appleton was admitted to Ray, Randall & Appleton LLP on May 31, 2003.

Question

The capital account balances for Ray & Randall LLP on May 31, 2006, were as follows:
  Ray and Randall shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit Appleton to the partnership with a 35% interest in partnership capital and net income. Appleton invested $80,000 cash, and no goodwill was recognized.
Prepare a working paper to compute the capital account balance for each partner immediately after Appleton was admitted to Ray, Randall & Appleton LLP on May 31, 2003.

Quizplus · Accepted Answer

The Answer of The capital account balances for Ray & Randall LLP on May 31, 2006, were as follows:
  Ray and Randall shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit Appleton to the partnership with a 35% interest in partnership capital and net income. Appleton invested $80,000 cash, and no goodwill was recognized.
Prepare a working paper to compute the capital account balance for each partner immediately after Appleton was admitted to Ray, Randall & Appleton LLP on May 31, 2003.

The Capital Account Balances for Ray & Randall LLP on May