Suppose the three partners agreed to sell 20% of the partnership shares to the new partner. There is more than a way to reorient the interests of the partnership. Partner A may decide to sell 25% of its equity to its partner C. Partner B may decide to sell 50% of its equity to its partner C. Partner C becomes owner (15% – 20%) 35% of the partnership capital. The book value of the Company`s net assets was immediately lower than its fair value prior to MaryAnn`s investment. The amount to be considered for the audit of the assets is the interest of the recipient of the income assistance for the partnership. When two or more people are co-owners in companies, the organization is called “partnership.” This form of organization is appreciated by both private service companies and the public legal and accounting professions. The main accounting characteristics and procedures of partnerships are explained and illustrated below. Partner C, for example, pays US$15,000 to Partner A for one-third of his interest and US$15,000 to Partner B for half of his shares. These payments go directly to the partners, not to the company. The following contribution is provided by the partnership.

The partnership between Metcalf, Petersen and Russell shared the benefits and losses. When Metcalf withdrew from the partnership, the partners agreed that there would be unregistered goodwill in the partnership. Under the premium method, Petersen and Russell`s equity balances were considered to be understood that the partnership agreement provided that, in such a case, the difference would be distributed according to the ratio of their capital shares after the allocation of net income and the closing of their drawing accounts. On this basis, partner A`s capital account is credited for USD 6,000 and partner B`s account is credited at USD 4,000. Suppose partner C`s equity is sold to Partner B. The entry for the transaction into the partnership books is as follows: In this case, Partner C paid $4,000 in bonuses to join the partnership. The amount of the bonus paid to the partnership will be distributed among the partners. The following table shows the distribution of the bonus. This difference will be distributed among the remaining partners on the basis of the partnership agreement. The problem is that the bonus is 25% of the net income of the partnership after deducting the bonus. The solution is to write an equation and solve it for the bonus (B).

The partnership agreement provides that 60% of the partnership`s revenues or losses will be attributed to Cor and 40% to Eng.