134k views
4 votes
Accounting question??

Accounting question??-example-1
User Kyoung
by
3.8k points

1 Answer

3 votes

Answer:

Hend's ownership percentage after Fatima is admitted is 28%.

Step-by-step explanation:

Since on Jan 1, Athari and Hend are partners with capital balances of 40,000 and 20,000 and they share profits and losses in the ratio of 3: 2 respectively, and on this date, Fatima invests 20,000 in cash for a 15 percent interest in the partnership, to determine Hend's ownership percentage after Fatima is admitted, the following calculation must be performed:

40,000 + 20,000 = 100%

100 - 15 = 85

60,000 = 85

20,000 = X

20,000 x 85 / 60,000 = X

28,333 = X

Therefore, Hend's ownership percentage after Fatima is admitted is 28%.

User SDC
by
4.4k points