Bjorn and Canute are partners who share profits and losses in a ratio of 2:3, respectively, and have the following capital balances on September 30, 2010:
$\begin{array}{ll}
\text { Bjorn, Capital } & \text { Canute, Capital } \
\$ 100,000 \mathrm{Cr} . & \$ 150,000 \mathrm{Cr} .
\end{array}$ The partners agree to admit Davis to the partnership. Calculate the capital balances of each partner after the admission of Davis, assuming that bonuses are recorded when appropriate for each of the following assumptions:
a. Davis pays Bjorn $50,000 for 40 percent of his interest
b. Davis invests $50,000 for a one-sixth interest in the partnership
c. Davis invests $50,000 for a 25 percent interest in the partnership
d. Davis invests $50,000 for a 15 percent interest in the partnership

Question

Bjorn and Canute are partners who share profits and losses in a ratio of 2:3, respectively, and have the following capital balances on September 30, 2010:
 $\begin{array}{ll}
\text { Bjorn, Capital } & \text { Canute, Capital } \
\$ 100,000 \mathrm{Cr} . & \$ 150,000 \mathrm{Cr} .
\end{array}$ The partners agree to admit Davis to the partnership. Calculate the capital balances of each partner after the admission of Davis, assuming that bonuses are recorded when appropriate for each of the following assumptions: 
a. Davis pays Bjorn $50,000 for 40 percent of his interest
b. Davis invests $50,000 for a one-sixth interest in the partnership
c. Davis invests $50,000 for a 25 percent interest in the partnership
d. Davis invests $50,000 for a 15 percent interest in the partnership

Quizplus · Accepted Answer

The Answer of Bjorn and Canute are partners who share profits and losses in a ratio of 2:3, respectively, and have the following capital balances on September 30, 2010:
 $\begin{array}{ll}
\text { Bjorn, Capital } & \text { Canute, Capital } \
\$ 100,000 \mathrm{Cr} . & \$ 150,000 \mathrm{Cr} .
\end{array}$ The partners agree to admit Davis to the partnership. Calculate the capital balances of each partner after the admission of Davis, assuming that bonuses are recorded when appropriate for each of the following assumptions: 
a. Davis pays Bjorn $50,000 for 40 percent of his interest
b. Davis invests $50,000 for a one-sixth interest in the partnership
c. Davis invests $50,000 for a 25 percent interest in the partnership
d. Davis invests $50,000 for a 15 percent interest in the partnership