A partnership admits a new partner.The new partner invests $50,000 in the business and receives a credit of $60,000 to his capital account.The difference of $10,000 is called a(n):

Question

Quizplus · Accepted Answer

The difference of $10,000 is called a bonus, which is a reward given to the new partner for joining the partnership. It is a common practice in partnerships to offer bonuses to new partners as an incentive for making a significant investment in the business.

A Partnership Admits a New Partner