Herbert and Ireneo are partners sharing profits and losses in the ratio of 60% and 40%, respectively. The partnership balance sheet at August 30, 2016 follows: Cash $12,150 Other Assets

Herbert and Ireneo are partners sharing profits and losses in the ratio of 60% and 40%, respectively. The partnership balance sheet at August 30, 2016 follows:

Cash $12,150
Other Assets 119,150
Accounts Payable 13,500
Herbert, capital 86,850
Ireneo, capital 31,500

At this date, Joshua was admitted as a partner for a consideration of $43,875 cash for a 40% interest in capital and in profits.

Required:

1. Assume Joshua is admitted by investing the $43,875 to the partnership:

Calculate the partners capital account of Herbert, Ireneo, and Joshua after the admission, and New Total Partners equity using:

a. Bonus Method
b. Revaluation Method

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