Detailed Answer
(d) The requirement is to determine the balance in the
new partner’s capital account after admission using the bonus
method. In this case, Grant is investing land with a FV of
$15,000 for a 1/5 interest in the new total capital of $95,000.
Using the bonus method, the new capital $95,000 equals the total
of the old capital plus Grant’s investment ($60,000 + $20,000 +
$15,000). Thus, a bonus of $4,000 is being credited to Grant’s
capital account because his interest (1/5 of $95,000, or $19,000)
exceeds his investment ($15,000). The bonus to the new partner
is charged to the old partners’ capital accounts in their profit and
loss ratios.