Question 7 1 point Letourneau invests 20000 in cash admissio

Question 7 (1 point) Letourneau invests $20,000 in cash (admission by investment) in the Sei partnership to acquire a 1/4 interest. In this case a) Letourneau\'s income ratio will automatically be 1/4 bi the total net assets of the new partnership are unchanged from the partnership c the total capital of the new partnership is greater than the total capita old partnership. d) the accounting will be the.same as a purchase of an interest. Save Question 8 (1 point)

Solution

Ans : option A

Reason: as per partnership act the share of profit will be determined on the basis of deed and if it is not mentioned in the deed the profit will be distributed equally or by method mentioned in deed. Assuming as provided in the question about 1/4 interest same is being mentioned in the partnership deed , so letorneous\'s income ratio will be 1/4.