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quester [9]
3 years ago
13

Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of $60,000 and $30,000, respectively

. With the consent of Bailey, Sandra buys one-half of Abby's interest for $35,000. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership?
Business
1 answer:
tigry1 [53]3 years ago
7 0

Answer:$30,000

Explanation:

The total value of Abby capital is $60,000 a sales of one half means $30,000 which will be debited to his capital account and credited to Sandra capital account as her share in the partnership, however the balance of $5000 will be credited to Abby share of profit account as gain on sale of share of capital. Crediting the whole sum to his capital account will reduce his stake in the partnership and put the old partners at a disadvantage in future share of profit.

The $5000 further represents a reward for the value he has added to the partnership called goodwill.

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8 0
2 years ago
The united states imposes a tariff on electronics imported from china. Which would be a result?
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Americans purchase more domestically produced electronics.

China has ceased all product marketing to Americans. Chinese gadgets are becoming more affordable. Consumer demand for domestically produced electronics in the US rises as a result of the electronics trade with China.

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2 years ago
What can happen to the economy when the level of unemployment is very low?
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That they are doing very well
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2 years ago
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Elena-2011 [213]

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Among the advantages of skill-based pay are the following:

Flexibility is increased by encouraging the performance of multiple tasks. It enables job rotation, and filling of temporary vacancies due, for instance, to absenteeism. It therefore contributes to a leaner workforce.

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7 0
2 years ago
You would like to use the periodic review model to compute the desired order quantity for a company. You know that vendor lead t
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Answer:

a. 40

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