Answer:
a) The capital balance remaining for three partners is:
Pineda = $185,000
Adams = $165,000
Gomez = $130,000
b) The capital balance of the remaining three partners is:
Adams = $20,000
Fergie = $43333
Gomez = $66667
Explanation:
a)
goodwill paid = amount paid to Fergie - capital balance of Fergie
= $140,000 - $110,000
= $30,000
total goodwill = $30,000*10/2
= $150,000
Pineda's share = $150,000*3/10
= $45,000
Adams's share = $150,000*3/10
= $45,000
Gomez's share = $150,000*2/10
= $30,000
capital balances of remaining partners using the goodwill method:
Pineda = capital balance + share pf goodwill
= $140,000 + $45000
= $185,000
Adams = capital balance + share pf goodwill
= $120,000 + $45000
= $165,000
Gomez = capital balance + share pf goodwill
= $100,000 + $30,000
= $130,000
total remaining capital balance = $130,000 + $165,000 + $185,000
= $480,000
Therefore, The capital balance remaining for three partners is $185,000 , $165,000 and $130,000.
b) bonus paid = amount paid to Pineda - capital balance of Pineda
= $340,000 - $140,000
= $200,000
bonus to be shared by remaining partners in the ratio 3:2:1
Adam's share = $200,000*3/6
= $100,000
Fergie's share = $200,000*2/6
= $66,667
Gomez's share = $200,000*1/6
= $33.333
the remaining capitals:
Adams = $100,000 - $120000
= $20,000
Fergie = $66,667 - $110000
= $43333
Gomez = $33333.33 - $100000
= $66667
Therefore, The capital balance of the remaining three partners is Adams = $20,000 , Fergie = $43333 and Gomez = $66667
