Answer Happy

Robin,Cardinal, Jay are partners sharing profits and losses
30/30/40 respectively. Their capital balances are:
Robin $175,000
Cardinal $300,000
Jay $275,000
total $750,000
The old and partners agree that the assets are undervalued by
$100,000.
c. Assume, instead Sparrow puts into the partnership
$350,000 of cash and is awarded a 50% interest. Record the entry of
sparrow using the goodwill method.
d. In the first year after Sparrow's entrance under the
conditions outlined in part "c" above, an agreement was made
amending the sharing of profits and losses, whereby Jay gets a
salary of $40,000, and each partner receives 10% interest on their
beginning capital balances with the remainder shared equally.
Unfortunately, the amendment was never written down and the
partners are in dispute over this arrangement. The partnership lost
$400,000.
Prepare a schedule showing how the loss will be
shared.
WE HAVE INCLUDED A PICTURE OF PART A AND B IF THAT HELPS
a) Adjustment for revaluation of assets Rate ans Capital A/C Add: Revaluation of Assets Capital Before Admission of New Partner Robin 175000 30000 205000 Cardinal 300000 30000 330000 jay 275000 40000 Total 750000 100000 850000 315000 b) Entry of Sparrow- New Partner using Bonus method Jay 275000 Sparrow Robin Capital A/C 175000 Revaluation of Assets 30000 205000 Investment by Sparrow Bonus by Sparrow to old Partners (in Old Ratio) 9000 Cardinal 300000 30000 330000 40000 315000 Total 750000 100000 850000 250000 250000 -30000 9000 12000 New Capital 214000 339000 327000 220000 1100000 Cr Dr 30000 Sparrow's CapitalA/C To Robin's Capital A/C To Cardinal Capital A/C To Jay's Capital A/C (Being Bonus by new partner to old partner on admission) 9000 9000 12000