Detailed Answer
(b) The requirement is to calculate the balances in the
capital accounts of a partnership after the admission of a new
partner. In this case, the new partner is investing $40,000 for a
1/3 interest in the new total capital of $150,000. No goodwill is
recorded because the new capital ($150,000) equals the total of
the old capital ($110,000) and Carter’s investment ($40,000).
However, a bonus of $10,000 is being credited to the new partner’s
capital account because his interest (1/3 of $150,000, or
$50,000) exceeds his investment ($40,000). The bonus to the
new partner is charged to the old partners in their profit and loss
ratios as shown below.
Blau [60,000 – 3/5 (10,000)] $54,000
Rubi [50,000 – 2/5 (10,000)] 46,000
Lind (150,000 ÷ 3) 50,000
$150,000